PSU lender Union Bank of India on Tuesday announced a Rs 3,000-crore qualified institutional placement (QIP) at a floor price of Rs 142.78 per share.
"We wish to inform you that the Committee of Directors for Raising Capital Funds (“Committee”) has at its meeting held today i.e. February 20, 2024 approved the raising of funds for an amount not exceeding Rs 3,000 Crore through issue of equity shares through Qualified Institutions Placement subject to the requisite regulatory /statutory approvals," said the bank in a stock exchange filing.
Union Bank of India's scrip on BSE closed trading at Rs 141.2 on Tuesday. The bank also announced the opening of the issue on February 20.
The 52-week high of Union Bank of India's scrip is Rs 155.35 and 52-week low is Rs 60.35.
Union Bank of India posted a 60 per cent jump in net profit at Rs 3,590 crore for the December quarter on the back of lower provisioning and better interest income. The bank had reported a net profit of Rs 2,249 crore in the year-ago period, Union Bank of India had said in a regulatory filing.
The total income of the bank increased to Rs 29,137 crore during the third quarter of the ongoing fiscal as compared to Rs 24,154 crore a year ago. The bank's interest income improved during the third quarter of the current fiscal to Rs 25,363 crore, as against Rs 20,883 crore a year ago.
The bank's gross Non-Performing Asset (NPA) ratio improved to 4.83 per cent as on December 31, 2023 as against 7.93 per cent a year ago.
Similarly, the net NPA also declined to 1.08 per cent as compared to 2.14 per cent at the end of December 2022.
Provisioning for bad loans came down to Rs 1,226 crore during the quarter under review from Rs 2,443 crore on the year-ago period, the bank said.
The PSU bank recently entered the MSCI Global Standard index in its February 2024 quarterly review. The bank had rallied 21 percent in the 3 months previously to make the list.
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