The Centre will raise its stake in United Bank of India (UBI) to 85.48 per cent, up from the existing 84.20 per cent, through a capital infusion of Rs 308 crore.
The fund infusion, cleared by UBI's board of directors at an extraordinary general meeting held here on Wednesday, will be through the issue of 2.8 crore equity shares.
The bank will allot equity shares of Rs 10 each at a premium of Rs 100.04 a share. Shares will be allotted on receipt of the fund from the Centre.
The process of fund infusion is expected to be completed by the end of this fiscal. Mr Bhaskar Sen, chairman and managing director of UBI, said: “The capital infusion was necessary for the bank to maintain a Tier I Capital Adequacy (CRAR) of eight per cent and meet the growing requirements of funds for expanding the business.”