Union Bank of India to Raise ₹6,000 Crore via Equity and Bonds; Board Approval Secured
By HDFC SKY | Updated at: Jan 16, 2026 01:52 PM IST
Mumbai, 25 June 2025: Union Bank of India (NSE: UNIONBANK, BSE: 532477) has secured approval from its Board of Directors to raise up to ₹6,000 crore through a combination of equity shares and bond issuances. The objective is to strengthen its capital base and fuel future expansion, as disclosed in a regulatory filing under Regulation 30 of SEBI (LODR) Regulations, 2015.
The decision was finalised during the Board meeting held today, which commenced at 11:00 AM and concluded at 3:40 PM.
Capital Raising Structure: Equity and Bonds Mix
| Mode of Capital Raise | Amount (₹ crore) | Instrument Type |
|---|---|---|
| Equity Capital | 3,000 | Through Further Public Offer, Rights Issue, QIP, Preferential Allotment or combo |
| Additional Tier 1 (AT1) Bonds (Basel III) | 2,000 | Including foreign currency-denominated AT1 bonds |
| Tier 2 Bonds (Basel III) | 1,000 | Including foreign currency-denominated Tier 2 bonds |
| Total | 6,000 |
Equity Issuance: Route Options and Conditions
| Route Options | Conditions |
|---|---|
| Public Issue, Rights Issue, Private Placement | Subject to Government of India, shareholder, and SEBI approval |
| Qualified Institutional Placement (QIP) or combination | To be done in one or more tranches |
The proposed capital plan aims to enhance Union Bank’s Tier 1 and Tier 2 capital ratios in accordance with Basel III guidelines, enabling it to support asset growth and improve risk resilience.
Regulatory Compliance and Disclosure
The bank’s announcement is in line with Regulation 30 read with point 4(d) of Para A of Part A of Schedule III of the SEBI (LODR) Regulations, 2015, which mandates timely disclosure of material developments such as capital raising activities.
About Union Bank of India
Union Bank of India is a major public sector lender with listings on both NSE and BSE. It offers a comprehensive suite of financial services catering to retail, corporate, and MSME clients. The bank has consistently managed its capital position to align with evolving regulatory norms and strategic growth targets.
Security Details
- BSE Code: 532477
- NSE Symbol: UNIONBANK
- Face Value: ₹10 per share
- Security Type: UBI-AT/BB
The approval to raise fresh capital highlights Union Bank’s commitment to maintaining a strong capital buffer amidst rising credit demand and evolving market conditions.
REF: https://nsearchives.nseindia.com/corporate/UNIONBANK_25062025155129_BM_Outcome_Capital_Plan.pdf
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