Union Bank gets shareholders' nod to raise up to Rs 3,700 crore

State-owned Union Bank of India on Saturday said it will raise up to Rs 3,700 crore, including capital infusion and public offering. The shareholders of the bank approved the capital-raising plan at the annual general meeting, it said in a statement.

"The AGM approved a special resolution for raising capital of up to Rs 3,700 crore, including capital infusion by the government, and the bank may issue equity capital-raising options such as through public issue (FPO) and/or rights issue or private placement...", it said.

The AGM, which was held on Friday, also approved a dividend of Rs 6 per share.

Finance Secretary Rajiv Mehrishi has said the government is likely to infuse an additional $1.8 billion (about Rs 11,500 crore) in public sector banks this fiscal over and above $1.2 billion earmarked in the Budget.

The Finance Ministry has been prodding public sector banks to explore possibility of raising funds from the market to meet capital adequacy norms and also to fund business plans.

The government held 60.47 per cent stake in the bank as of March 15, 2015. The stock closed at Rs 153.05 on Bombay Stock Exchange (BSE) on Friday, down 0.97 per cent.