Union Bank likely to submit new capital raising proposal to FinMin

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Union Bank likely to submit new capital raising proposal
Mumbai headquartered, public-sector lender, Union Bank of India is likely to submit a fresh capital raising proposal to Finance Ministry within few days, said media report.

The bank has taken this decision keeping in minds its future prospect to raise capital to fund its growth needs beyond 2015, said Business Line.

"Our bank will be in a comfortable position in terms of capital till 2015. For the period post-2015, we will require more funds," Union Bank of India, CMD, Debabrata Sarkar told media.

Meanwhile, he also assured that the bank would not raise the interest rates which has been currently reduced to 10 per cent from 10.25 per cent.

He further exemplified his concern that the bank witnessed good demand from the agriculture, retail and SME sectors, but demand from the corporate sector has been subdued. Improper management of infrastructure projects in the country was hurting the financial stability of the banks.

Read more about: union bank of india
Story first published: Monday, July 22, 2013, 9:23 [IST]
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