The board of Union Bank of India has approved a plan to raise capital up to Rs 5,000 crore through qualified institutional placement (QIP), a regulatory filing said on Monday. The decision was made during a meeting of Union Bank’s committee of directors.

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The base deal size of Rs 2,500 crore can be scaled up by Rs 2,500 crore. The board has set a floor price of Rs 91.10 per share.

The state-run lender informed in another exchange filing that the committee will meet again on Thursday, August 24, to "consider and approve the issue price, including a discount, if any there to" for the equity shares to be allotted to qualified institutional buyers.

The announcement comes a month after Union Bank reported a 107 percent on-year rise in its standalone net profit to Rs 3,236.44 crore for the first quarter that ended June 30, 2023. Also, the bank's Net interest income (NII), increased 16.6 percent, coming at Rs 8,839.7 crore. The CASA deposits have increased by 7.17 percent year-on-year and the bank now has a total deposit base of Rs 11,28,052 crore.

In the trading session on August 21, Union Bank's scrip settled at 2.81 percent lower to Rs 91.80 on the BSE.

Also Read:Union Bank of India Q1 Results | Profit spikes 108% to Rs 3,236 crore, net interest income surges 17%

First Published:Aug 21, 2023 10:03 PM IST