Union Bank of India’s board approves raising ₹5,000 crore via QIP

The committee of directors of the public sector bank made the decision to raise capital funds during their meeting earlier in the day.

“We wish to inform you that the Committee of Directors on for Raising Capital Funds has at its meeting held today i.e. August 21, 2023, inter alia: approved the raising of funds for an amount not exceeding ₹5,000 crore through issue of equity shares through QIP subject to the requisite regulatory /statutory approvals, as applicable,” the bank said in an exchange filing today.

Additionally, the public sector bank stated in an exchange filing that the Committee of Directors for Raising Capital Funds will meet on August 24, to discuss and approve the issue price, along with any applicable discount allowed by the SEBI ICDR Regulations, for the equity shares that will be distributed to qualified institutional buyers in accordance with the issue.

“the Bank may offer a discount of not more than 5% on the Floor Price so calculated for the Issue,” the bank said in an exchange filing. 

The Bank will decide the Issue Price after consulting with the Book Running Lead Managers (BRLM) assigned to the QIP Issue.

Union Bank of India announced its April-June quarter results for fiscal 2023-24 (Q1FY24) on July 20, reporting a surge of 107 per cent in net profit to ₹3,236 crore on a standalone basis, compared to ₹1,558.5 crore in the corresponding period last year. 

The profit after tax has almost doubled in the June quarter driven by a higher core income and significantly lower provisions reported by the state-owned lender.

The bank’s net interest income – the difference between interest earned and interest expended, grew 16.6 per cent to ₹8,839.7 crore in the first quarter of current fiscal, compared to ₹7,581.7 crore in the year-ago period.

Also Read: Union Bank Q1 Results: PAT surges 107% to ₹3,236 crore on higher income, NII up 16%; asset quality improves

On Monday, Union Bank of India share price closed 2.81% lower at ₹91.80 apiece on BSE.

Updated: 21 Aug 2023, 10:34 PM IST