Union Bank of India is planning to raise capital by issuing fresh equity shares on rights basis to existing shareholders including government, which holds over 55 per cent stake.


</p><tr><td><p class='TableClas'></p><P class='TableClas'><DIV CLASS=rightDiv><script language="JavaScript">
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		<script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
		</script> </DIV><p class='TableClas'>The bank management has discussed plans for rights issue with the government. The proposal is in preliminary stage, senior bank official said. </P>
</p><p class='TableClas'>The bank needs fresh capital to support business growth and to meet Basel-II norms. There is also going to be demand infusion from new activities like the life insurance joint venture with Dai-Ichi and Bank of India.</P>
</p><p class='TableClas'>State Bank of India has already raised about Rs 17,000 crore through a rights issue in March 2008.</P></p><p class='TableClas'></p></table>


Union Bank in talks with govt on rights issue

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