The National Savings bank will meet treasury officials soon about making an equity injection to the under capitalised Union Bank.
NSB together with Sampath Bank and Chinkara Group of Singapore is considering an investment in Union Bank, which will then be managed by a special committee.rn
rnNSB is looking at a Rs. 100 mn investment in Union Bank of a total Rs. 700 mn capital infusion.rn
rnldblquote We have not made any decision. After discussing with the Finance Minister and the Treasury Secretary we will take a decision,
dblquote NSB Chairman D M Swaminathan said at a media conference last week.rn
rnUnion Bank shareholders have already given the nod for increasing the share capital of the bank.rn
rnThe bank plans to introduce a special class of shares giving its new shareholders more powers than those enjoyed by ordinary shareholders.rn
rnThe special class of shares will be converted to ordinary shares once the restructuring process is complete.rn