Union Bank of India surges on fund-raising plans
Upstox
2 min read • Updated: February 21, 2024, 12:36 PM
Summary
The lender announced a ₹3,000 crore qualified institutional placement (QIP) at a floor price of ₹142.78 per share. The floor price of the QIP is around 3.5% lower than the current price of 148 per share (as of 12:20 PM).
Shares of the Union Bank of India, which is a public sector bank, are up more than 5% today.
This comes a day after the lender announced a ₹3,000 crore qualified institutional placement (QIP) at a floor price of ₹142.78 per share. The floor price of the QIP is around 3.5% lower than the current price of 148 per share (as of 12:20 PM).
“We wish to inform you that the Committee of Directors for Raising Capital Funds (“Committee”) has at its meeting held today i.e. February 20, 2024, inter alia: Approved the raising of funds for an amount not exceeding ₹3000 Crore through issue of equity shares through Qualified Institutions Placement subject to the requisite regulatory /statutory approvals, as applicable,” said the bank in the exchange filing.
Meanwhile, shares of Union Bank of India have been on an upward trajectory and have gained 24% in this year so far. This comes on the back of strong performance in the current financial year.
In the first nine months of FY24, the bank’s net profit has jumped 82% to 10,338 crore. This was aided by strong growth in loan book and improvement in asset quality. The loan book expanded by 11% on a year-on-year basis. At the same time, net non-performing assets declined by 106 basis to 1% of the total loan book.