Union Financial institution to hunt shareholders nod to boost as much as Rs 6,800 cr fairness capital

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Union Bank of India (UBI) will maintain a unprecedented basic assembly (EGM) later this month to hunt shareholders‘ approval for elevating as much as Rs 6,800 crore equity capital.

The EGM shall be held on December 30, 2020 via video conferencing or different audio visible means to acquire shareholders’ approval for elevating of fairness capital as much as Rs 6,800 crore throughout the FY2020-21 by means of varied modes reminiscent of public issue, rights challenge, or private placement together with Qualified Institutions Placement or preferential allotment to the federal government, the general public sector financial institution mentioned in a regulatory submitting.

“As a way to meet the minimal capital and leverage ratio necessities underneath the Basel III tips for growth of enterprise belongings and based mostly on the estimated development, your administrators have determined to boost fairness share capital as much as Rs 6,800 crore,” UBI mentioned.

The improved capital shall be utilized for the overall enterprise functions of the financial institution, it added.

Shares of UBI on Thursday closed 5.27 per cent larger at Rs 30.95 apiece on the BSE.