Union Bank expects Rs 1,000 cr cap infusion

Union Bank of India expects fund infusion of about Rs 1,000 crore as part of recapitalisation plan of the government.

“We have applied and we are expecting about Rs 950-1000 crore (capital infusion during the current fiscal),” Union Bank of India Chairman and Managing Director D Sarkar said.
“The government has agreed in-principle to infuse the capital and may be in weeks time we will be getting information from the government,” he added.

Last fiscal, the state-owned bank got capital support of Rs 280 crore.

With the infusion, Tier I capital of the bank will go up, he said, adding, it was 8.17 per cent as on September 2012.

The capital infusion will help the bank to enhance lending to productive sectors.