Union Bank of India to raise up to Rs 10,000 crore through equity, debt

12 Jun 2024 , 12:29 PM

Union Bank of India’s board of directors has approved a capital raising plan of up to ₹10,000 Crore. This plan involves raising equity capital of ₹6,000 Crore through various avenues such as public issues, rights issues, private placements, and preferential allotment.

The bank aims to raise ₹2,000 Crore each through Basel III compliant Additional Tier 1 (AT1) and Tier 2 bonds, subject to regulatory approvals. The capital raising initiative is intended to strengthen the bank’s capital base for growth and compliance purposes.

In the March quarter, Union Bank of India recorded an 18.36% growth in consolidated net profit, amounting to ₹3,328 Crore, attributed to lower provisions.

For the fiscal year 2023-24, the bank reported a consolidated net profit of ₹13,797 Crore, compared to ₹8,512 Crore in the previous fiscal year. Standalone net profit for the quarter increased to ₹3,311 Crore from ₹2,782 Crore in the same period last year.

The core net interest income grew by 14.38% to ₹9,437 Crore, supported by an 11.7% growth in advances and a widened net interest margin to 3.10% from 2.97% in the previous year.

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