Union Bank of India is likely to raise up to Rs 955 crore through preferential allotment of shares. The bank has received the formal approval to issue up to 2.6 lakh crore shares to LIC on a preferential allotment basis by board of director on February 15, 2012. This works to 5% of the bank's equity share capital and is expected to raise up to Rs 600 crore. It will also raise up to Rs 355 crore by issuing shares to the government.
The bank posted a contraction of 66% in its net profit of Rs 197.00 crore for the quarter ended December 31, 2011 as compared to Rs 579.57 crore for the quarter ended December 31, 2010. The bank’s total income has increased by 27.14% to Rs 5966.82 crore for the quarter ended December 31, 2011 as compared to Rs 4693.06 crore for the corresponding quarter of the previous fiscal.
