Union Bank Approves ₹25,000 Crore Bond Fundraising; Shares Rise 0.82%

Mumbai, March 16: Union Bank of India said its Committee of Directors for fund raising approved issuance of long-term bonds and green or sustainable bonds aggregating up to ₹25,000 crore, according to an exchange disclosure dated March 16, 2026.

The bank said the committee cleared the proposal in a meeting held on March 16, 2026. The approval covers issuance of long-term infrastructure bonds of up to ₹20,000 crore in one or more tranches.

As part of the programme, the bank may explore raising ₹7,500 crore before March 31, 2026. This includes a base issue of ₹3,000 crore along with a greenshoe option of ₹4,500 crore. The instruments will carry a tenure of 10 years and will be utilised for financing infrastructure and affordable housing projects, the bank said in the filing.

Separately, the committee also approved issuance of green bonds or sustainable bonds amounting up to ₹5,000 crore in one or multiple tranches. These instruments are typically used to fund environmentally sustainable projects aligned with the bank’s sustainability financing framework.

Share Price Movement On March 16

Union Bank of India shares closed higher on March 16, 2026, reflecting a mild positive response from the market following the regulatory disclosure.

The Union Bank of India share price settled at ₹175.30, up 0.82% as of 3:30 PM IST on March 16, 2026, according to exchange data. The stock traded between ₹171.25 and ₹176.97 during the session.

Market capitalisation stood around ₹1.34 lakh crore while the stock remained below its 52-week high of ₹205.49 recorded earlier in the year. The price movement occurred during regular trading hours after the bank disclosed the fundraising outcome to stock exchanges.

Company Background

Union Bank of India is a public sector lender headquartered in Mumbai and operates under the ownership of the Government of India. The bank offers a range of retail banking, corporate banking and treasury services across India.

Following the amalgamation of Andhra Bank and Corporation Bank in April 2020, the lender expanded its national footprint and strengthened its balance sheet size. The bank regularly accesses the bond market to raise long term funds that support credit growth in infrastructure and priority sectors.

Infrastructure bonds issued by banks typically qualify for regulatory exemptions under certain statutory liquidity requirements and are used to support long duration lending.

Conclusion

The latest approval enables Union Bank to access debt capital markets through multiple instruments including infrastructure bonds and sustainability linked debt. Such issuances allow banks to diversify funding sources while supporting sector specific lending programmes.

The fundraising plan forms part of the bank’s broader capital management strategy as it continues to finance infrastructure, housing and green projects in line with regulatory frameworks and government policy objectives.

Source:

• https://www.nseindia.com/get-quote/equity/UNIONBANK/Union-Bank-of-India
• https://nsearchives.nseindia.com/corporate/UNIONBANK_16032026103357_CDRDF_Outcome_Capital_16032026.pdf