Union Bank gets shareholders nod to raise up to Rs 6,800 cr

Shareholders of Union Bank of India on Wednesday approved the bank's proposal for raising up to Rs 6,800 crore equity capital to fund business growth.

During the Extraordinary General Meeting (EGM), the shareholders passed the special resolution with the requisite majority for raising capital through FPO (Follow-on Public Offering) /Rights or QIP (Qualified Institutional Placement) or preferential allotment, the bank said in a regulatory filing.

It would raise the fund during the current fiscal.

"In order to meet the minimum capital and leverage ratio requirements under the Basel III guidelines for the expansion of business assets and based on the estimated growth, your directors have decided to raise equity share capital up to Rs 6,800 crore," the bank had said in its EGM notice to shareholders.

The bank will utilise the raised capital for general business purposes, it said.