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Union Bank of India: This public sector bank, backed by the President of India, has outlined a plan to raise capital amounting to ₹8,000 crore. This announcement follows a recent uptick in the bank's share price.

Govt Bank Share Hike: Shares of the government-owned Union Bank of India were seen trading with gains on Wednesday. The bank's shares climbed approximately 0.79% to reach ₹168.89. A major catalyst for this rise was the Board's approval of a plan to raise capital of up to ₹8,000 crore. This move drew significant investor focus to PSU banking stocks, following a series of capital-raising announcements and Board approvals within the sector.

The Bank's New Decision

Union Bank of India announced that the capital-raising plan was approved during a Board meeting held on May 26, 2026. The bank is preparing to raise a total of ₹8,000 crore. Of this amount, up to ₹3,000 crore will be raised through the issuance of equity shares, while the remaining ₹5,000 crore will be raised via bonds.

How Will the Bank Raise Such a Large Sum?

The bank may raise funds through various methods, such as:

FPO (Follow-on Public Offer)
Rights Issue
QIP (Qualified Institutional Placement)

Private Placement

However, obtaining approvals from the government, shareholders, and regulatory bodies will be mandatory for these initiatives.

What Are Basel III Bonds?

The bank has also approved the issuance of AT1 and Tier-2 bonds. These are specialized types of bonds utilized by banks to bolster their financial stability and capital base.

How Did the Share Perform?

On Wednesday morning, Union Bank of India shares were trading at ₹168.89. This represented an increase of approximately 0.79% over the previous closing price of ₹167.55. Over the past 52 weeks, the stock has touched a high of ₹202.30 and a low of ₹124.85. The bank recently approved a plan to raise ₹8,000 crore, following which investors are now keeping a close watch on the bank's next move.