In a bid to fund its business growth, Union Bank of India is planning to raise Rs 1,386 crore through Qualified Institutional Placement (QIP). The bank is planning to raise the fund during the second quarter of the current fiscal.
Moreover, shareholders of the bank have approved raising of capital up to Rs 1,386 crore by way of QIP. The QIP will improve its core tier-I capital, which stood at 7.54 per cent in March quarter, by 0.5 per cent.
Further, the bank is expecting capital infusion from the government during the current fiscal. The government had infused Rs 500 crore in UBI during 2013-14 as part of Rs 14,000-crore recapitalisation plan.
