New Delhi, June 25 (IANS) Public sector lender Union Bank of India on Wednesday announced plans to raise up to Rs 6,000 crore through a mix of equity and debt instruments.

The decision was approved by the bank’s board on Wednesday and was announced after market hours.

Out of the total fundraise, the bank will raise up to Rs 3,000 crore through equity instruments.

This could include a Further Public Offer (FPO), rights issue, Qualified Institutional Placement (QIP), or a combination of these options.

However, the equity raising plan is still subject to approval from the shareholders. The remaining Rs 3,000 crore will be raised through debt instruments.

This includes up to Rs 2,000 crore via Basel III-compliant Additional Tier 1 (AT1) Bonds and up to Rs 1,000 crore through Tier 2 Bonds.

On Wednesday, Union Bank of India’s shares fell 1.8 per cent and closed at Rs 144.40 apiece on the Bombay Stock Exchange (BSE).

Despite the drop, the stock has gained nearly 3 per cent in the past one month and over 21 per cent in the past six months.

Over the last five years, the bank’s shares have seen a significant rise of more than 327 per cent. The stock currently trades at a price-to-earnings (P/E) ratio of 6.76.

In a separate development, the bank earlier this week informed that the Central government has cancelled the appointment of Pankaj Dwivedi as Executive Director of Union Bank.

He has immediately ceased to hold the position. The government had approved Dwivedi’s appointment in March last year for a three-year term.

“We wish to inform you that the Central Government … has cancelled the appointment of Pankaj Dwivedi as Executive Director of Union Bank of India and consequently he ceases to be the Executive Director of the Bank with immediate effect,” the public lender informed the exchanges on Monday.

He has now returned to his previous role as General Manager at Punjab & Sind Bank.

–IANS

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