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Union Bank of India to Raise Rs 10,000 Crore for Business Growth


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The state-owned Union Bank of India has given its approval for a proposal to raise Rs 10,000 crore to support its business growth. This amount includes Rs 6,000 crore to be raised through a share sale. The bank plans to raise the equity capital within the overall limit of Rs 10,000 crore through a public issue, which could be a further public offer, rights issue, or Qualified Institutional Placement (QIP). However, this plan is subject to approval from the government, regulatory authorities, and shareholders.

In addition to the equity capital, the bank also plans to raise funds through Basel III compliant bonds. The board has approved the raising of Additional Tier 1 (AT1) Bonds not exceeding Rs 2,000 crore and Tier 2 Bonds not exceeding Rs 2,000 crore. This includes the possibility of issuing foreign currency denominated AT1/Tier 2 Bonds. Again, this will be done within the overall limit of Rs 10,000 crore.

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