Union Bank of India’s Board of Directors has approved a capital raising plan of up to ₹8,000 crore. This plan includes raising equity capital not exceeding ₹3,000 crore through various instruments like public issues and rights issues. Additionally, the bank may raise Basel III compliant Additional Tier 1 and Tier 2 Bonds not exceeding ₹5,000 crore. This strategic move aims to bolster the bank’s financial strength and support future growth initiatives.
Union Bank Board Approves Significant Capital Infusion
In a significant strategic decision, the Board of Directors of Union Bank of India, in their meeting held on May 26, 2026, has approved a comprehensive plan to raise capital amounting to up to ₹8,000 crore. This move is aimed at strengthening the bank’s financial foundation and supporting its future expansion strategies.
Details of the Capital Raising Plan
The approved capital raising plan is multi-faceted, encompassing both equity and debt instruments:
Equity Capital Enhancement
The bank intends to raise equity capital up to a limit of ₹3,000 crore. This can be done in tranches through various methods including, but not limited to, a Public Issue (Further Public Offer), Rights Issue, Private Placements, Qualified Institutions Placements, or Preferential Allotment. The bank may also consider other modes, subject to the necessary approvals from the Government of India, other regulatory authorities, and its shareholders.
Debt Capital Issuance
Furthermore, Union Bank plans to raise capital through Basel III compliant Additional Tier 1 Bonds and/or Tier 2 Bonds. The aggregate amount for this segment is capped at ₹5,000 crore. This also includes any foreign currency denominated AT1/Tier 2 Bonds. The total capital raised through both equity and debt will not exceed the overall limit of ₹8,000 crore.
Meeting Conduct
The Board meeting commenced at 11:00 A.M. and concluded at 2:00 P.M. on May 26, 2026. The outcome of this meeting is being shared for information and appropriate dissemination.
Source: BSE
