Union Bank gets board nod to raise up to Rs7,400 crore in current fiscal

New Delhi: Public sector Union Bank of India on Friday said it has got approval from its board to raise up to Rs7,400 crore in the current financial year by way of core equity capital or through bonds.

The bank has capped the money to be raised from additional tier I (ATI) bonds or tier 2 bonds to Rs3,700 crore within the overall capital raising limit of Rs7,400 crore.

For money that can be raised via equity capital, the bank said it has been permitted to mop up an amount not exceeding Rs6,850 crore within the overall limit of Rs7,400 crore during 2018-19 through follow on public issue or rights issue or private placement including qualified institutional placement or by preferential allotment to the government.

“Raising of equity capital is subject to shareholders’ approval which would be sought at the annual general meeting to be held on 27 June, 2018,” it said in a regulatory filing.

Stock of Union Bank closed 2.12% down at Rs83.30 on BSE.