Union Bank of India Raises Rs 6,000 Cr Via Equity and Debt

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Posted by AI on 2025-06-26 08:51:38 | Last Updated by AI on 2026-06-27 10:14:16

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Union Bank of India, one of India's largest government banks, is looking to raise Rs 6000 crore through a combination of equity and debt. The bank will raise Rs 3000 crore via equity over the next two years. This capital raising plan comes as the bank looks to improve its capital adequacy ratio (CAR), which, at 7.47% as of March 2022, was slightly below the regulatory 8% requirement. To achieve this target, the bank will also raise Rs 3000 crore through debt, including Tier 1 and Tier 2 bonds.

This capital raise via equity will consist of a combination of a maiden qualified institutional placement (QIP) as well as a rights issue. The QIP will comprise up to a 10% stake sale, which could raise anywhere between Rs 3000 to Rs 4000 crore.

This move comes as the bank, alongside other national banks, has been urged by the Reserve Bank of India (RBI) to shore up their capital in order to be able to lend more and support the burgeoning economy. The bank has said it will use this capital to finance its credit growth, as well as to enhance its business opportunities.

This is a significant move for Union Bank, and, alongside other recent capital raises in the Indian banking sector, could significantly enhance the bank's financial position and opportunities for growth.

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