City Union Bank is in the process of seeking approval of market regulator, SEBI for raising Rs 400 crore through a rights issue, a top official said on Friday.
“We will be filing documents to get the approval from SEBI. It will happen in two or three weeks,” said Mr N Kamakodi, MD & CEO, City Union Bank.
On the Bank’s proposal to raise capital of Rs 350 crore, he said they would pass a resolution at the Annual General meeting in this regard.
The bank has also sought shareholders’ approval to raise up to Rs 350 crore through the QIP route.
“It has been resolved to seek the approval of shareholders of the bank to augment capital up to Rs 350 crore inclusive of premium through the process of Qualified Institutional Placement...,” City Union Bank today said in a filing to the NSE.
The proposal to raise funds would be used for expansion plans besides increasing the net worth to Rs 3,000 crore.