Union Bank Of India’s Board approves debt issuance of nearly Rs 19,000 crore

New Delhi, July 30 (SocialNews.XYZ) Union Bank of India’s board of directors on Thursday approved raising up to $2 billion or nearly Rs 19,145.93 crore in foreign currency funds, according to an exchange filing.

The proposed fundraise will be executed through the Medium Term Note Programme in tranche(s) by issuing of debt instruments via the bank’s Dubai and/or Sydney branches, the state‑owned lender said.

The move follows an earlier approval of Rs 8,000 crore capital raising in May through a mix of equity and debt to strengthen the lender’s capital base.

In a regulatory filing, the bank said its board had cleared a proposal to raise up to Rs 3,000 crore through equity issuance in one or more tranches.

The board also approved raising up to Rs 5,000 crore through Basel III-compliant Additional Tier-I and Tier-II bonds, including instruments denominated in foreign currencies.

Union Bank reported a net profit of Rs 5,332 crore for Q1 FY27, up 29.6 per cent from Rs 4,116 crore in previous year. Net interest income climbed nearly 10 per cent year‑on‑year to Rs 10,037 crore, while operating profit rose 15.8 per cent to Rs 8,003 crore.

Asset quality improved as gross non‑performing assets eased to 2.65 per cent from 2.82 per cent in the prior quarter. Net NPA stood at 0.47 per cent, marginally down from 0.48 per cent in the previous quarter.

Net interest income (NII), a key measure of core banking income, declined 1.1 per cent year-on-year in the March quarter to Rs 9,406 crore from Rs 9,514 crore in the corresponding quarter last year.

Shares of Union Bank ended 0.40 per cent lower at Rs 170.40 on the National Stock Exchange against the benchmark Nifty index that advanced 0.28 per cent. The stock has advanced 10.82 per cent year‑to‑date and around 30.32 per cent over the past 12 months.

—IANS

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Source: IANS