Date:17/11/2005 URL: http://www.thehindubusinessline.com/2005/11/17/stories/2005111702680600.htm

Back Union Bank gets nod for public issue

Our Bureau

Mumbai , Nov. 16

THE Union Bank of India said it has received approval from the Government for its second public issue. The public issue of 4.5 crore equity shares will be through a book-building process, said a press release.

Post issue, the Government stake in Union Bank of India may come down from 60.85 per cent to 55.45 per cent.

The bank is raising money in the capital market to shore up the Capital Adequacy Ratio in view of the robust growth in credit and the Basel II requirements.

Union Bank has to obtain approval of its shareholders and SEBI to bring out the issue and the exact date would be announced later.

The bank announced that it has received RBI approval for setting up a representative office in Shanghai, China. Earlier, it received permission to open representative offices in Dubai and Doha.

Union Bank had raised Rs 288 crore in its initial public offer in August 2002. Its shares moved up by Rs 1.70 to Rs 119.10 on the BSE on Wednesday.