GOVT TO UP ITS STAKE IN UNION BANK OF INDIA TO 58 PER CENT

According to Mr. M.V. Nair, Chairman and Managing Director, Union Bank of India is expecting Rs 1,150 crore capital infusion from the government by March 2011, which will increase the Centre's stake to 58 per cent. Currently, the government holds 55.43 per cent stake in Union Bank of India. This will help to increase tier I capital of the bank to 8.37 per cent from the current 7.9 per cent.

The infusion will raise the government's state in the bank to 58 per cent.

The Cabinet has already approved the capitalisation plan of the Union Bank, which received Rs 111 crore about four months back as first tranche.

The bank is expecting a deposit growth of 20 per cent and credit growth of 23-24 per cent during the current fiscal.

Earlier this week Union Bank of India raised its base rate to nine per cent.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/govt-to-up-its-stake-in-union-bank-of-india-to-58-per-cent/articleshow/7184781.cms