State-owned Union Bank of India on Wednesday said it proposes to raise up to Rs 6,800 crore during this fiscal to fund business growth.
About Union Bank
Union Bank of India is one of the largest government-owned banks of India with 120+ million customers and a total business of US$106 billion.
After the amalgamation with Corporation Bank and Andhra Bank, which came into effect on 1 April 2020, the amalgamated entity becomes the fourth largest bank in terms of branch network.
UBI now has around 9590 branches after the amalgamation.
Mode of raising funds
The board has approved raising of “equity capital up to Rs 6,800 crore (including premium, if any) during 2020-21 by way of various modes such as Public lssue (i.e. Follow-on Public Offer) and/or Rights Issue and/or Private Placements, including Qualified Institutions Placement and/or Preferential Allotment to the Government of lndia,
The bank has convened an extraordinary general meeting of its shareholders on 30 December 2020 to seek their approval for the proposed fund raising.
|Shareholders (as on 31-March-2020)||Shareholding %|
|Govt of India||86.75%|
|Public & Others||5.60%|
Bank of India reported a standalone net profit of Rs 516.62 crore in Q2 FY21 as against a net loss of Rs 1193.61 crore in Q2 FY20.
Total income during the quarter jumped 90.3% YoY to Rs 20084.10 crore.
Stock Market Impact
Union Bank of India rose 1.50% to Rs 27.10 after the bank announced plans to raise the equity capital upto Rs 6,800 crore during the FY 2020-21.
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