The Board of Directors of Union Bank of India, in their meeting held on May 26, 2026, officially approved a comprehensive capital plan. The bank has received authorization to raise capital amounting to no more than ₹8,000 crore to strengthen its financial position.

This capital raise is structured into two main components. First, the bank is authorized to raise equity capital not exceeding ₹3,000 crore through various channels, including Further Public Offers (FPO), Rights Issues, Private Placements (such as Qualified Institutions Placements), Preferential Allotments, and the Employee Stock Purchase Scheme (ESPS). Second, the bank will raise up to ₹5,000 crore through the issuance of Basel III-compliant Additional Tier 1 (AT1) bonds and/or Tier 2 bonds, which may include foreign currency-denominated instruments. Both components are subject to necessary approvals from the Government of India, regulatory authorities, and the shareholders of the bank.

Union Bank of India is a leading public sector bank in India, headquartered in Mumbai. Following the amalgamation of Andhra Bank and Corporation Bank in 2020, the institution has established a massive network of over 8,650 branches and ATMs, supported by more than 73,800 employees. In 2025, the bank remained focused on digital transformation and expanding its financial services portfolio, which includes retail, corporate, and private banking. As of March 2026, the bank reported a total business of ₹23,85,502 crore.

As of the most recent data, the Government of India maintains a majority stake of 74.76% in the bank. Other major institutional investors as of 2025 included the Life Insurance Corporation of India (LIC) and various mutual funds and global asset managers, such as BlackRock and The Vanguard Group, reflecting significant institutional confidence in the bank’s long-term growth trajectory. Financial highlights from 2025 indicated that the bank has been working to manage its non-performing assets while maintaining a healthy capital adequacy ratio, with reported good profit growth over the last five years.