Mumbai, The Board of Directors of Union Bank of India on Monday gave its in-principle approval for amalgamation of Andhra Bank and Corporation Bank into Union Bank of India. The board, in its meeting, approved the revised capital plan for FY 2019-20 to raise capital funds by an amount not exceeding Rs.17,200 crores within which upto Rs. 13,000 crores through equity capital and upto Rs 4,200 crores through AT 1/Tier II bonds.
The board approved capital raising by issue of equity shares through preferential allotment to Government of India for an amount upto Rs 13,000 crores subject to other regulatory approvals.
The board authorised Committee of Directors for Raising of Capital Funds (CDRCF) for issuance and allotment of new equity shares on preferential basis to the Government of India for an amount approved by the Government of India and to take decision on the date, time and place for holding of EGM, finalise the relevant date and pricing for preferential issue.