The board of PSU lender Union Bank of India on June 25 approved the plan to raise capital worth up to Rs 6,000 crore through a mix of equity and debt instruments.

The lender will raise equity capital not exceeding Rs 3,000 crore as part of an overall Rs 6,000 crore fund raise limit, which will include either one or a combination of several equity instruments like Further Public Offer (FPO), rights issue, Qualified Institutions Placements (QIP) and more, subject to shareholders' approval.

The rest of the Rs 3,000 crore will be raised through debt instruments, with up to Rs 2,000 crore aimed through Basel III compliant Additional Tier 1 (AT 1) Bonds and up to Rs 1,000 crore through Tier 2 Bonds.

Union Bank of India made the announcement in the post market hours of June 25. The shares of the lender dropped 1.8 percent to close at Rs 144.40 apiece. The stock has risen nearly 3 percent in the past one month, and over 21 percent in the past six months.

The shares of the bank have gained over 327 percent in the past five years. The stock currently has a P/E ratio of 6.76.

Notably, the bank on June 24 had announced that Centre has cancelled the appointment of Pankaj Dwivedi as the lender's Executive Director. He thereby ceased to hold the position at the bank with immediate effect.

The Central government in March last year had approved Dwivedi’s appointment as executive director at the bank for three years. Pankaj Dwivedi has now been deputed to his previous post as the General Manager (GM) at Punjab & Sind Bank.