Money & Banking

Union Bank gets nod to raise funds

Our Bureau Mumbai | Updated on October 09, 2019 Published on October 09, 2019

Union Bank of India said its committee of directors for raising of capital funds has accorded approval to make preferential issue of new equity shares to the government aggregating up to ₹11,768 crore. The fund-raising is aimed at boosting the PSB’s capital adequacy, improving loan-loss provision coverage levels, and supporting loan growth in the run up to the merger of Andhra Bank and Corporation Bank with the bank. As of June-end 2019, Union Bank’s capital adequacy ratio and provision coverage ratio stood at 11.43 per cent and 56.50 per cent. As of June-end 2019, the government had 74.27 per cent stake in the bank. In FY2018-19, the bank raised ₹4,112 crore from the government at ₹78.84 per equity share and ₹568 crore via ESPS at ₹58.49 per equity share.

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Published on October 09, 2019
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