Union Bank of India’s board has approved raising up to Rs 10,100 crore through a mix of debt and equity.

The bank will raise up to Rs 8,000 crore in tranches, through follow-on public offer (FPO), rights issue or private placement, including qualified institutional placement (QIP) and preferential allotment. It can be a combination of these, the state-owned lender said in a regulatory filing.

This fundraising will be subject to the approval of the government, other regulatory authorities and approval of the bank’s shareholders.

The remaining amount of Rs 2,100 crore will be raised through additional tier-I (AT1) bonds and/or tier-II bonds.

As on 31 December, the bank’s capital adequacy ratio stood at 14.45%, with common equity tier-I ratio at 10.71%.

Last week, the executive committee of State Bank of India’s (SBI) central board approved raising up to $2 billion of long-term funds in FY24 through a public offer or private placement of senior unsecured notes or bonds in US dollar or any other convertible currency.

On BSE, Union Bank's share price closed 1.6% higher at Rs 74.95 apiece On Wednesday.