Union Bank's board meeting on 25 November, shareholders approval can be taken to raise funds

The board of directors of Union Bank of India, one of the public sector banks, will meet on November 25. In this meeting, shareholders’ approval is being considered for raising funds in various ways. The bank has given this information in the regulatory filing.

Funds can be raised in these ways

According to the regulatory filing, Union Bank of India is planning to raise funds through a public offering, rights issue, private placement, qualified institutions placement, preferential allotment to the government and other ways. However, fundraising methods will be adopted only after regulatory approval. In view of the epidemic, several government and private banks are planning to raise funds to strengthen their buffer. At the same time, many banks have raised funds.

Stability environment in share price

After the information of the Board of Directors meeting came to light, there is an atmosphere of stability in Bank of India shares. The bank’s stock is trading at Rs 25.55 per unit without any change at 11.55 am in the BSE. The bank’s stock closed at Rs 25.55 per unit on Friday as well.

517 crore net profit to the bank in the second quarter

Union Bank of India reported a net profit of Rs 517 crore in the second quarter of the current financial year. Profit increased by 55.3% over the previous quarter. The bank had a net profit of Rs 333 crore in the April-June 2020 quarter. The bank’s net interest income grew 6.1% to Rs 6,293 crore in the second quarter. Net interest income for the same period a year ago was Rs 5,934 crore.

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