Union Bank gets shareholder nod to raise up to Rs 3,700 crore
The Finance Ministry has been prodding PSU banks to explore possibility of raising funds from the market to meet capital adequacy norms and also to fund business plans.
State-owned Union Bank of India on Saturday said it will raise up to Rs 3,700 crore, including capital infusion and public offering.
The shareholders of the bank approved the capital-raising plan at the annual general meeting, it said in a statement.
The AGM, it said, approved a special resolution for "raising capital of up to Rs 3,700 crore, including capital infusion by the government, and the bank may issue equity capital-raising options such as through public issue (FPO) and/or rights issue or private placement..." The AGM, which was held yesterday, also approved a dividend of Rs 6 per share.
Finance Secretary Rajiv Mehrishi has said the government is likely to infuse an additional US $1.8 billion (about Rs 11,500 crore) in public sector banks this fiscal over and above US $1.2 billion earmarked in the Budget.
The Finance Ministry has been prodding PSU banks to explore possibility of raising funds from the market to meet capital adequacy norms and also to fund business plans.
The government held 60.47% stake in the bank as of March 15, 2015.
The stock closed at Rs 153.05 on BSE on Friday, down 0.97%.