Union Bank of India's board approved raising funds via QIP

22 Aug 2023 , 02:17 PM

The bank’s board agreed to gather funds through qualified institutional placement (QIP) for a sum of up to Rs 5,000 crore. They announced this decision in an official filing on August 21 and also set a price of Rs 91.10 per share.

A group of Union Bank’s directors responsible for raising funds made this decision. On the same day, August 21, they greenlit the issue and established the price at Rs 91.10 per share.

The plan involves raising funds within a limit of Rs 5,000 crore by issuing equity shares through QIP. This move is subject to getting the required regulatory and legal approvals.

The same committee will meet again on August 24 to decide on the actual price, possibly with a discount, for equity shares allotted to qualified institutional buyers in this issue.

In the first quarter of the current fiscal year, Union Bank’s standalone net profit surged by 107 % to reach Rs 3,236.44 crore. Their net interest income also went up by 16.59 % year-on-year to Rs 8,840 crore. Improvement in asset quality was seen, with the ratio of gross non-performing assets (NPAs) going down by 288 basis points and net NPAs decreasing by 173 basis points compared to the prior year.

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