Union Bank Of India Board Approves ₹19,000 Crore Debt Fundraising

Union Bank of India’s board of directors has approved a proposal to raise foreign currency funds of up to $2 billion, equivalent to around Rs 19,145.93 crore, through the issuance of debt instruments. The state-owned lender informed stock exchanges on Thursday that the fundraising will be carried out through its Dubai and/or Sydney branches.

The proposed capital raising comes as part of the bank’s efforts to strengthen its financial position and support future business expansion. Debt instruments issued through overseas branches will help the lender access international markets and diversify its funding sources. The board approval marks an important step towards executing the fundraising plan.

Earlier in May, Union Bank of India had approved a fundraising plan of up to Rs 8,000 crore through a combination of equity and debt instruments. The move was aimed at enhancing the bank’s capital base and ensuring adequate support for business growth and operational requirements.

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The development follows a strong financial performance by Union Bank during the first quarter of financial year 2027. On July 15, 2026, the bank reported a net profit of Rs 5,332 crore, marking a 29.6% year-on-year increase compared with Rs 4,116 crore recorded during the same quarter a year earlier. Net interest income also grew 10% annually to Rs 10,037 crore in the June quarter.

The bank’s operating profit increased 15.8% year-on-year to Rs 8,003 crore in Q1FY27, compared with Rs 6,909 crore in the corresponding period last year. Asset quality also showed improvement, with gross non-performing assets (NPA) declining to 2.65% from 2.82% in the previous quarter, while net NPA stood at 0.47%.

Shares of Union Bank of India closed 0.40% lower at Rs 170.40 apiece on the National Stock Exchange (NSE) on Thursday, compared with a 0.28% rise in the benchmark Nifty index. The bank’s stock has gained 10.82% so far this year and has risen 30.32% over the past 12 months, reflecting investor interest amid improved financial performance and growth initiatives.

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