Union Bank of India’s Board of Directors, in a meeting held on May 26, 2026, approved a capital raising plan of up to ₹8,000 crore. This includes raising equity capital up to ₹3,000 crore through various means like public issues and rights issues. Additionally, the bank plans to raise Basel III compliant Additional Tier 1 and Tier 2 bonds not exceeding ₹5,000 crore.
Union Bank of India Announces Significant Capital Infusion Plan
In a key strategic decision, the Board of Directors at Union Bank of India convened on May 26, 2026, to consider and approve a substantial capital raising initiative. The bank plans to raise capital amounting to a maximum of ₹8,000 crore, subject to necessary approvals. This move is aimed at strengthening the bank’s financial position and supporting its future growth objectives.
Breakdown of Capital Raising Components
Equity Capital Raising
A significant portion of the planned capital infusion involves raising equity. The bank is authorized to raise equity capital up to ₹3,000 Crore, potentially through multiple tranches. The approved methods include, but are not limited to, Public Issues (Further Public Offer), Rights Issue, and Private Placements. Other avenues such as Qualified Institutions Placements, Employee Stock Purchase Scheme (ESPS), and Preferential Allotment are also considered, either individually or in combination. Any issuance will be subject to the approval of the Government of India, other regulatory authorities, and the Bank’s shareholders.
Debt Capital Raising
In addition to equity, the bank will also raise debt capital. The Board has approved the raising of Basel III compliant Additional Tier 1 Bonds and/or Tier 2 Bonds. The total amount for this segment is not to exceed ₹5,000 Crore. This includes potential issuances of foreign currency denominated AT1/Tier 2 Bonds, all within the overall limit of ₹8,000 Crore for the entire capital raising plan.
Meeting Details
The Board meeting commenced at 11:00 A.M. and concluded its deliberations at 2:00 P.M. The outcome of this meeting signifies a proactive step by Union Bank of India towards enhancing its capital adequacy and pursuing its strategic financial goals.
Source: BSE
