Mumbai, May 26 (IANS) Union Bank of India on Tuesday approved a plan to raise up to Rs 8,000 crore through a mix of equity and debt instruments to strengthen its capital base and support future business growth.

In a regulatory filing to the BSE, the bank said its board of directors, in a meeting held on May 26, 2026, approved the capital-raising proposal.

“We wish to inform you that the Board of Directors in its meeting held on May 26, inter-alia, considered and approved: Capital plan of the bank to raise capital by an amount not exceeding Rs 8,000 crore,” the public lender said in its filing.

As part of the plan, the public sector lender will raise up to Rs 5,000 crore through Basel III-compliant additional Tier 1 bonds and/or Tier 2 bonds.

The bank has also approved raising up to Rs 3,000 crore through equity capital in one or more tranches.

According to the filing, the equity fundraising may be carried out through a further public offer (FPO), rights issue, private placement, qualified institutional placement (QIP) and/or preferential allotment.

“Raising of equity capital not exceeding Rs 3,000 crore in tranche(s) within the overall limit of Rs 8,000 crore, through public issue (i.e. further public offer) and/or rights issue and/or private placements including qualified institutions placements and/or preferential allotment or a combination(s) thereof to any eligible institutions and/or through any other mode(s) subject to the approval of Government, other regulatory authorities and approval of Shareholders of the Bank,” it added.

The capital infusion is expected to help the bank improve its capital adequacy position and support loan growth amid rising credit demand in the banking sector.

“Raising of Basel III compliant Additional Tier 1 Bonds or Tier 2 not exceeding Rs 5,000 crore, (including foreign currency denominated AT1/Tier 2 Bonds) within the overall limit of Rs 8,000 crore,” it added.

Meanwhile, shares of Union Bank of India were trading at Rs 167.25 on the BSE, down 1.01 per cent from the previous close.

–IANS

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