Days after it got shareholders’ approval to raise around Rs 3,700 crore, state-owned Union Bank of India has said it's planning to mop up Rs 500 crore through qualified institutional placement (QIP) next month.
“We may look at raising Rs 2,500 crore through the QIP route towards the end of the next month,” the bank's chairman and managing director Arun Tiwari told PTI.In the recently held AGM, the bank has received its shareholders' approval for raising capital of up to Rs 3,700 crore, including capital infusion by the government, through public issue and/or rights issue or private placement.
The city-based bank, which missed out capital infusion from the government last fiscal, has sought above Rs 1,200 crore this fiscal, according to sources. Currently, the Government holds 60.13 per cent in the city-based bank.