Union Bank of India gets nod to raise ₹6,000 crore via QIPs; check all details

Union Bank of India’s board of directors on Wednesday, June 25, gave their approval to raise up to ₹6,000 crore through a mix of equity and debt instruments. 

The bank, in a statement to the exchanges, also said that it will raise up to ₹3,000 crore via equity capital in one or more tranches. The planned methods to raise the amount include a Further Public Offer (FPO), Rights Issue, Qualified Institutions Placement (QIP), Preferential Allotment, or a combination of these.

Further, the public sector bank has also received a nod to raise up to ₹3,000 crore via debt instruments. This includes raising through Basel III compliant Additional Tier 1 (AT 1) bonds of ₹2,000 crore and Tier 2 bonds of ₹1,000 crore.

Shares of Union Bank of India on Wednesday settled at ₹144.59 apiece on the National Stock Exchange, falling 1.7%.

Meanwhile, the central government has demoted Pankaj Dwivedi from his post as Executive Director (ED) of Union Bank of India to General Manager (GM) amid an ongoing court case challenging the legality of his appointment.

In a gazette notification issued by the Department of Financial Services under the Ministry of Finance, the government said it had cancelled Dwivedi’s appointment as ED, which was made via a notification dated March 27, 2024.

For the March quarter, Union Bank of India’s global gross advances grew 8.62% year-on-year (YoY) to ₹9.82 lakh crore during the March 2025 quarter, compared to ₹9.05 lakh crore in the corresponding period last year.

Its total global business stood at ₹22.93 lakh crore in the quarter ended March 31, 2025, surging 7.82% YoY from ₹21.62 lakh crore in Q4 FY24. It was up 5.86% QoQ from ₹21.66 lakh crore in the December quarter of FY25.

The net interest income for the bank largely remained flat at ₹9,514 crore in Q4 FY25 as against ₹9,437 crore in the previous year's similar quarter. This was largely due to a sharper increase in the interest expenses at 7.5% YoY than the total interest income at 5.1%.

On the balance sheet front, the total advances for the quarter grew by 8.6% YoY at ₹9.83 trillion, and the deposits growth remained healthy at 7.22% at ₹13 trillion. The asset quality for the bank also improved, with GNPA and NNPA ratios of 3.6% and 0.63% as against 4.76% and 1.05% in the previous year's same quarter.