The private lender on Monday (13 July) said its board has approved the proposal to raise up to Rs 1,100 crore through equity and debt.
The board of directors in a meeting held on 13 July 2020 fixed 14 August 2020 as the date of ensuing annual general meeting (AGM) by way of video conferencing/other audio visual means, the bank said in a filing.
The board of directors will seek approval of shareholders in the AGM for raising further capital through qualified institutional placement (QIP) route to the tune of Rs 600 crore (including premium).
It may be recalled that last year also the bank obtained the approval of shareholders for raising capital through QIP to the tune of Rs 500 crore but has not utilised the same, it added.
The bank will also seek shareholders' permission for issuing unsecured perpetual debt instruments (part of additional tier I capital), non-convertible debentures, Basel III compliant tier I and II bonds or such other debt securities as may be permitted under RBI guidelines, up to a total amount of Rs 500 crore, on private placement basis, it said further.
City Union Bank reported a net loss of Rs 95.29 crore in Q4 March 2020 as compared to a net profit of Rs 175.11 crore in Q4 March 2019. Total income rose 7.9% year-on-year (Y-o-Y) to Rs 1,220.98 crore during the quarter.
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City Union Bank offers a wide range of banking and financial services across India, including both domestic and International banking services. The bank had a network of 700 branches and 1,793 ATMs as on 31 March 2020.
Shares of City Union Bank slipped 2.70% to Rs 124.35 on BSE. The stock traded in the range of Rs 123.35 to Rs 128.75 so far.
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