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Informist, Thursday, Sept. 17, 2026

 

By Priyasmita Dutta

 

NEW DELHI – State-owned Union Bank of India is likely to raise INR 30 billion through a qualified institutional placement soon, a senior finance ministry official said Thursday. "The Department of Financial Services has already approved the plan, and the bank is waiting to hear from the finance minister," the official said. The fundraising is likely to take place in the December quarter, the official said. 

 

In May, the bank's board approved a fundraising plan of INR 80 billion, comprising INR 30 billion through equity and INR 50 billion through bonds, including Basel III-compliant additional Tier 1 or Tier 2 bonds. 

 

The government holds a 74.8% stake in Union Bank, just about meeting the Securities and Exchange Board of India's minimum public shareholding norm of 25%. Currently, four of the 12 public sector banks do not comply with these norms.

 

According to the official, the government will likely cut its stake in Union Bank through the QIP, which will help the bank boost its capital and allow the government to shore up miscellaneous capital receipts. 

 

The government has focused on reducing its stake in public sector entities in 2026-27 (Apr-Mar) and has collected INR 557.57 so far, more than three times the amount collected in the entire previous fiscal year. The government has crossed INR 557 billion in disinvestment proceeds only twice before – in FY19, when it collected INR 850 billion and in FY18, when it collected INR 1 trillion in FY18. 

 

For the June quarter, Union Bank reported a net profit of INR 53.32 billion on total income of INR 318.06 billion. Thursday, the bank's shares ended at INR 178.09 on the National Stock Exchange, down 0.1% from the previous close. End

 

Edited by Saji George Titus

 

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