Union Bank of India will see a capital infusion of Rs.1,154 crore by this month-end, said its Executive Director G. Subrahmanyam. An extraordinary general meeting (EGM) of the bank would be held on Saturday to approve the infusion.
Speaking to reporters after inaugurating the 226 ‘UnionExperience’ branch here on Thursday, he said the bank had sought capital of Rs.900 crore but the government had approved Rs.1,154 crore. The capital infusion process was expected to be completed within a week after the EGM.
Replying to a question, he said that as on December 31, 2012, the bank had a capital adequacy ratio of 10.78 per cent.
On the policy review by the Reserve Bank of India next week, Mr. Subrahmanyam said a cut of 25 basis points was expected.
As for the bank’s performance in the fourth quarter, he said they expected a growth of 16 to 18 per cent, with a net interest margin of around 3 per cent, as compared to 2.95 per cent in the third quarter.