Union Bank of India’s board approves plan to raise capital up to ₹8,000 crore; shares fall

Union Bank of India on Tuesday, May 26, announced that its board of directors has considered and approved a capital plan to raise its capital by an amount not exceeding ₹8,000 crore.

In a regulatory filing, the bank stated that it plans to raise equity capital not exceeding ₹3,000 crore in tranches within the ₹8,000 crore overall limit.

The equity capital will be raised through a public issue (i.e., further public offer) and/or rights issue and/or on private placements, including qualified institutions placements (QIPs) and/or through preferential allotment or a combination thereof to any eligible institutions and/or through any other modes, subject to the approval of the Government of India.

Furthermore, the bank plans to raise Basel III-compliant Additional Tier 1 Bonds or Tier 2, not exceeding ₹5,000 crore, including foreign currency-denominated AT1/Tier 2 Bonds, within the overall limit of ₹ 8,000 crore.

Union Bank of India Q4 results

The bank had reported its earnings for the fourth quarter of the 2025-26 financial year (Q4 FY26), posting a 3.03% year-on-year (YoY) growth in its net profit to ₹5,315.76 crore.

In the corresponding period of the previous fiscal year, it had logged a profit of ₹4,984.92 crore, according to a regulatory filing.

However, its net interest income (NII) fell 1.13% YoY to ₹9,406 crore for the reporting quarter, compared to ₹9,514 crore in the March quarter of the 2024-26 fiscal year (Q4 FY25).

Furthermore, its net interest margin contracted to 2.64% in Q4 FY26, as against 2.97% in the year-ago period.

Its asset quality improved, with its gross non-performing assets (GNPA) declining to 2.82% during the quarter under review, from 3.06% in the previous quarter and 3.60% in Q4 FY25.

Union Bank of India’s net non-performing assets also improved to 0.48%, in comparison to 0.51% in the December quarter of FY26 and 0.63% in Q4 of the last fiscal year.

Union Bank stock performance

Shares of Union Bank were trading in the red on the National Stock Exchange (NSE) on Tuesday, May 26, amid a decline in the NIFTY Bank index.

At around 2:55 PM, the scrip was trading 0.89% lower at ₹167.37 per equity share.

While the stock gained 5% in the past week, it lost 5% over the month. On a year-to-date basis, it has advanced 9%.

The share hit a 52-week high of ₹205.49 apiece on February 27, 2026, and a year’s low of ₹124.64 per unit on August 29, 2025.

Union Bank of India has a total market capitalisation of ₹1.28 lakh crore as of May 26, 2026, according to data on the NSE.