United Bank of India may raise equity capital up to Rs 1,000 crore via public issue, rights issue or qualified institutional placement (QIP) to support business growth in the current financial year.
“The bank is targeting over R2 lakh crore business by March 31, 2016. To support the projected business growth and at the same time to maintain a healthy CRAR, the bank may require additional capital,” United Bank of India MD and CEO P Srinivas said during the bank’s annual general meeting on Monday.
The public sector lender sought shareholders’ approval for raising the additional capital not exceeding Rs. 1,000 crore. “This is an enabling resolution. We have not decided anything. With your permission, at a right time if the market is favouring us we will take appropriate decision on capital raising,” he added.