State-owned Union Bank of India today said it has got shareholders’ nod for raising Rs 3,200 crore through issuance of shares.
Shareholders have approved raising of “capital through FPO/rights/QIP etc by issuing such number of equity shares, up to Rs 3,200 crore,” Union Bank of India said in a statement.
FPO or Follow-on Public Offer refers to issuance of shares to all types of public shareholders, while rights issue involves issuance to existing investors. In QIP, placement of shares happens with the qualified institutional investors.
During the quarter ended March 2016, the bank posted 78 per cent decline in net profit to Rs 96.1 crore on account of higher provisioning for bad loans.
The bank had clocked a net profit of Rs 443.77 crore in the January-March quarter of the previous financial year.
Its net NPAs also increased to 5.25 per cent from 2.71 per cent at the end of March 2015.