Union Bank of India to Raise ₹6,000 Crore via Equity and Bonds; Board Approval Secured

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.

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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.

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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.

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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.

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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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