Union Bank of India has approached the government for additional capital worth Rs 1,800 crore, said S Raman, executive director at Union Bank.
The government owns a 55.43% stake in Union Bank. Institutions hold another 30.44% in the bank with the remaining is held bycorporate bodies, individual shareholders and others.
It had come out with an initial public offering in 2002 and a follow on public offer in 2006. “The additional capital could be in the form of equity or some other form,” Raman said.
As part of its expansion plan, the bank had recently applied for an asset management licence and plans a venture through partnership with KBC asset management from Belgium.
He added that the bank is expecting to receive its licence ‘very soon’. “We believe we can set things up two months after the license comes through,” Raman said.
Union Bank’s gross non-performing assets (NPAs) stood at 1.95% of total assets as of June. The bank does not see NPAs rising significantly in the remainder of the year, Raman said.
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