New Delhi: Union Bank of India has approved a capital raising plan of up to ₹8,000 crore to strengthen its capital base, improve financial stability, and support future credit growth. The decision was taken at the bank’s Board of Directors meeting held on 26 May 2026, according to a regulatory filing under SEBI (LODR) Regulations, 2015.
Equity Capital Raising Plan of Up to ₹3,000 Crore
As part of the approved fundraising strategy, Union Bank of India plans to raise up to ₹3,000 crore through equity issuance. The bank may use one or more of the following methods:
- Further Public Offer (FPO)
- Rights Issue
- Qualified Institutional Placement (QIP)
- Preferential Allotment
- Private Placement
- Combination of multiple methods
The equity issuance will be subject to approvals from the Government of India, regulatory authorities, and the bank’s shareholders.
Read also: Union Bank of India Signs MoU with Nanded Civic Body to Offer Customised Salary Banking Services
₹5,000 Crore to Be Raised via Basel III Compliant Bonds
The Board has also approved raising up to ₹5,000 crore through Basel III-compliant debt instruments, including:
- Additional Tier 1 (AT1) Bonds
- Tier 2 Bonds
- Foreign currency-denominated Basel III bonds
These instruments are designed to further strengthen the bank’s capital adequacy framework while supporting long-term lending capacity.
Objective: Strengthening Capital Base and Supporting Credit Growth
The capital raising initiative aims to:
- Improve capital adequacy ratios
- Support expansion in credit lending
- Enhance financial flexibility
- Meet regulatory requirements under Basel III norms
- Capitalize on growing demand for infrastructure and corporate credit
The move comes at a time when the banking sector is witnessing strong credit demand and expanding investment opportunities.
Board Meeting Details
According to the regulatory filing, the Board meeting began at 11:00 AM and concluded at 2:00 PM on 26 May 2026.
About Union Bank of India
Union Bank of India is one of the leading public sector banks in the country, providing a wide range of banking and financial services across retail, corporate, and MSME segments. With a strong nationwide network, the bank plays a key role in supporting economic growth through credit expansion, digital banking services, and infrastructure financing.
Read also: Union Bank of India Q4 Profit Rises 6.6% to ₹5,316 Crore Despite Income Dip and Higher Provisions
