Union Bank of India has approved a plan to raise up to Rs 8,000 crore through a mix of equity and debt instruments to bolster its capital base and facilitate future business expansion. The board of directors, in a meeting on May 26, 2026, endorsed this capital-raising initiative. The bank intends to raise Rs 5,000 crore through Basel III-compliant additional Tier 1 bonds and/or Tier 2 bonds, along with up to Rs 3,000 crore through equity capital in one or more tranches.
The equity fundraising, not exceeding Rs 3,000 crore, may involve methods such as a further public offer (FPO), rights issue, private placement, qualified institutional placement (QIP), and/or preferential allotment. This move is subject to approvals from the Government, regulatory bodies, and the bank’s shareholders. The capital infusion is aimed at enhancing the bank’s capital adequacy position and supporting loan growth amidst increasing credit demand in the banking sector.
Moreover, the bank plans to raise Basel III compliant Additional Tier 1 Bonds or Tier 2, not exceeding Rs 5,000 crore, within the overall limit of Rs 8,000 crore. Union Bank of India’s shares were trading at Rs 167.25 on the BSE, marking a 1.01% decline from the previous close.
