Business
26 May, 2026
Union Bank to raise Rs 8,000 cr through debt, equity mix
Business To Business, New Delhi, 26th May, 2026: Union Bank of India on Tuesday approved plans to raise up to ₹8,000 crore through a mix of equity and debt instruments.
According to a filing with the BSE Limited, the bank’s board approved:
- Raising up to ₹5,000 crore through Basel III-compliant Additional Tier 1 (AT1) bonds and/or Tier 2 bonds
- Raising ₹3,000 crore in equity capital
The equity fundraising may take place in tranches through multiple routes, including:
- Further Public Offer (FPO)
- Rights issue
- Qualified Institutional Placement (QIP)
- Preferential allotment
- Other private placements
The capital-raising exercise is aimed at strengthening the bank’s:
- Capital adequacy position
- Lending capacity
- Balance sheet resilience
- Regulatory compliance under Basel III norms
Union Bank of India is one of India’s major public sector lenders, and such fundraising initiatives are typically used to support business growth, credit expansion, and financial stability.