 "UBI")
Shares of Union Bank of India (UBI) jumped 6.8 per cent to Rs 150.7 per share in Wednesday's intraday trade after the public sector bank (PSB) opened fund raise via qualified institutional placement (QIP) on February 20, 2024.
The stock was quoting near its 52-week high level of Rs 155.3, touched on February 5, 2024.
The Committee of Directors for Raising Capital Funds, at its meeting held on Tuesday, February 20, approved the raising of funds for an amount not exceeding Rs 3,000 crore through issue of equity shares through Qualified Institutions Placement subject to the requisite regulatory /statutory approvals.
The floor price, UBI said, has been fixed as Rs 142.78 per equity share for the issue. This is barely 1.1 per cent higher than the stock's Tuesday's closing price of Rs 141.1 per share.
"A meeting of the Committee of Directors for Raising Capital Funds is scheduled to be held on February 23, 2024 to consider and approve the issue price, including a discount, if any, for the equity shares to be allotted to Qualified Institutional Buyers, pursuant to the issue," it added in another stock exchange filing.
During the October-to-December quarter, the state-owned lender posted a 60 per cent jump in net profit at Rs 3,590 crore on the back of lower provisioning and better interest income.
The bank had reported a net profit of Rs 2,249 crore in the year-ago period (Q3FY23).
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The bank's capital adequacy ratio improved to 15.03 per cent as compared to 14.45 per cent at the end of December 2022.
On the asset quality front, gross Non-Performing Asset (NPA) ratio improved to 4.83 per cent as on December 31, 2023 as against 7.93 per cent a year ago.
Similarly, the net NPA declined to 1.08 per cent as compared to 2.14 per cent at the end of December 2022.
Provisioning for bad loans came down to Rs 1,226 crore during the quarter under review from Rs 2,443 crore on the year-ago period, the bank said.
