President Of India-Backed PSU Bank Announces Rs 8,000 Crore Capital Raising Plan; Share Price Trades Higher
Join Us
Follow Us
Union Bank of India approved plans to raise up to Rs 3,000 crore through equity issuance and up to Rs 5,000 crore via Basel III-compliant AT1 and Tier 2 bonds.
✨ AI Powered Summary
On Wednesday, the Indian equity benchmarks traded higher during the morning session, with the benchmark Nifty 50 index rising 0.16 per cent to 23,951.00. PSU Banking stocks remained in focus following capital raising announcements and board approvals. In this segment, Union Bank of India share price gained 0.79 per cent to Rs 168.89 after the bank approved a capital raising plan of up to Rs 8,000 crore.
Union Bank Approves Capital Raising Plan
Union Bank of India informed exchanges that its Board of Directors, in the meeting held on May 26, 2026, approved the capital plan of the bank to raise funds up to Rs 8,000 crore.
According to the filing, the bank approved raising equity capital of up to Rs 3,000 crore in one or more tranches within the overall limit of Rs 8,000 crore.
The proposed equity issuance may be undertaken through Further Public Offer (FPO), Rights Issue, private placements including Qualified Institutional Placement (QIP), Employee Stock Purchase Scheme (ESPS), Preferential Allotment or a combination of these methods. The bank stated that the proposed fund raising remains subject to approvals from the Government of India, shareholders and other regulatory authorities.
Basel III Bond Issuance
Basel III bonds are special debt instruments used by banks to strengthen their capital position and improve financial stability.
The Board approved raising up to Rs 5,000 crore through Basel III-compliant Additional Tier 1 (AT1) Bonds and/or Tier 2 Bonds within the overall approved capital raising limit of Rs 8,000 crore. The filing also stated that the bank may issue foreign currency-denominated AT1 and Tier 2 bonds.
According to the exchange filing, the Board meeting commenced at 11:00 AM and concluded at 2:00 PM on May 26, 2026.
Union Bank of India Stock Performance
Union Bank of India shares were trading at Rs 168.89 during Wednesday’s morning session, up 0.79 per cent from the previous close of Rs 167.55. The stock’s 52-week high and low stood at Rs 202.30 and Rs 124.85, respectively.
Add DSIJ as your preferred news source on G o o g l e
Add NowWhat are your views on Union Bank of India’s Rs 8,000 crore capital raising plan? Share your thoughts in the comments below.
Disclaimer: This article is for informational purposes only and not investment advice.