Union Bank to seek shareholders nod to raise up to Rs 6,800 cr equity capital

Union Bank to seek shareholders nod to raise up to Rs 6,800 cr equity capital

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Union Bank of India (UBI) will hold an extraordinary general meeting (EGM) later this month to seek shareholders’ approval for raising up to Rs 6,800 crore equity capital.
The EGM will be held on December 30, 2020 through video conferencing or other audio visual means to obtain shareholders’ approval for raising of equity capital up to Rs 6,800 crore during the FY2020-21 by way of various modes such as public issue, rights issue, or private placement including Qualified Institutions Placement or preferential allotment to the government, the public sector bank said in a regulatory filing.

“In order to meet the minimum capital and leverage ratio requirements under the Basel III guidelines for expansion of business assets and based on the estimated growth, your directors have decided to raise equity share capital up to Rs 6,800 crore,” UBI said.

The enhanced capital will be utilized for the general business purposes of the bank, it added.

Shares of UBI on Thursday closed 5.27 per cent higher at Rs 30.95 apiece on the BSE.

Credit: Stocks-Markets-Economic Times

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