Union Bank of India Share Price in Focus as Bank Plans to Raise ₹6,000 Crore Through Equity and Debt

Union Bank of India has drawn investor attention by announcing a strategic move to raise ₹6,000 crore through a combination of equity and debt instruments. This plan, as approved in the board meeting held on June 25, 2025, showcases the public sector lender's intent to strengthen its capital base and fuel future growth.

Union Bank of India Aims to Raise ₹3,000 Crore Through Equity Issuance

Union Bank of India aims to secure ₹3,000 crore through equity issuance in multiple tranches. The methods considered include Further Public Offer (FPO), Rights Issue, Qualified Institutions Placement (QIP), and Preferential Allotment. This infusion will support the bank’s Tier 1 capital ratio and ensure regulatory compliance under Basel III norms. The flexibility in modes allows the bank to adapt to prevailing market conditions and optimise capital-raising efficiency.

Debt Instrument Strategy

In addition to equity, the bank has received permission to raise ₹3,000 crore through debt. This includes ₹2,000 crore via Additional Tier 1 (AT1) bonds and ₹1,000 crore using Tier 2 bonds. These are Basel III-compliant and may also be issued in foreign currencies. Such instruments help bolster the overall capital adequacy ratio and provide long-term stability to the institution’s balance sheet.

Read More: IndusInd Bank MFI, Unsecured Loans Likely Face Scrutiny Over Lending Norms!

Governance Development: ED Appointment Cancelled

Meanwhile, the Central Government has revoked the appointment of Pankaj Dwivedi as Executive Director of Union Bank of India. This action followed a Delhi High Court case citing the absence of vigilance clearance as a key violation. Consequent to the cancellation, Dwivedi has resumed his role as General Manager at Punjab and Sind Bank. This leadership update coincides with the fundraising news, posing operational and governance-related implications.

Union Bank of India Share Price Performance

On June 26, 2025, Union Bank of India share price opened at ₹145.80 on NSE, above the previous close of ₹144.30. During the day, it surged to ₹147.50 and dipped to ₹144.26. The stock is trading at ₹147.50 as of 2:38 PM. The stock registered a significant gain of 2.22%.

Over the past week, it has moved up by 2.80%, over the past month, it has moved up by 4.53%, and over the past 3 months, it has moved up by 22.70%.

Conclusion

Union Bank of India’s decision to raise ₹6,000 crore through both equity and debt channels reflects a strategic move toward strengthening its capital structure.

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