Tamil Nadu-based City Union Bank on July 6 said it is looking to raise up to Rs 500 crore through the qualified institutional placement (QIP) route.
"The board has inter-alia approved the agenda for raising further capital through QIP route to the tune of Rs 500 crore (including premium) for inclusion in the notice calling for the forthcoming annual general meeting of the bank for approval by members as enabling resolution," the bank said in a stock exchange filing.
To seek approval for the QIP, the bank said it has called an annual general meeting (AGM) on August 18 and the meeting will be held via video-conferencing.
The board of directors, which met on July 6, has given the approval for the fund-raising proposal. "As done in the previous years, this year also we are seeking the approval of shareholders by way of enabling resolution," the lender said.
Further, the bank said it had received the approval of shareholders for raising capital through the QIP route, but have not utilised the same.
Shares of City Union Bank ended at Rs 141.55, up by Rs 1.55, or 1.11 percent on the BSE.
