By Admin 
Govt Bank Share Hike: Shares of government bank Union Bank of India were seen trading with gains on Wednesday. Shares of the bank rose by about 0.79% to Rs 168.89. The main reason for this was the bank’s approval of the plan to raise capital up to Rs 8,000 crore. Because after the capital raising announcements and board approvals, the focus remained on PSU banking stocks.
Bank’s new decision
Union Bank of India said that the capital raising plan was approved in the board meeting held on May 26, 2026. The bank is preparing to raise a total of Rs 8,000 crore. Out of which up to Rs 3,000 crore will be raised by issuing equity shares. The remaining Rs 5,000 crore will be raised through bonds.
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How will the bank raise such a huge amount?
A bank can raise funds in several ways, such as:
- FPO (Follow-on Public Offer)
- rights issue
- QIP (Qualified Institutional Placement)
- private placement
However, for this, approval from the government, shareholders and regulatory bodies will be required.
What are Basel III bonds?
The bank has also approved the issuance of AT1 and Tier-2 bonds. These are special types of bonds, which banks use to strengthen their financial position.
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How was the stock’s performance?
On Wednesday morning, Union Bank of India shares were seen trading at Rs 168.89. This was about 0.79% more than the previous closing price of Rs 167.55. In the last 52 weeks, the stock has touched a high of Rs 202.30 and a low of Rs 124.85. The bank has recently approved the plan to raise Rs 8,000 crore, after which investors are now keeping an eye on the next step of the bank.