Union Bank of India has convened an extraordinary general meeting (EGM) of its shareholders on March 29 to consider for approval a preferential placement of equity to the Central Government, its Chairman and Managing Director, Mr M.V. Nair, has said.

The Government will infuse about Rs 1,096 crore before end March, taking the Centre's stake in the bank to 58 per cent from the current level of 55.43 per cent, he told Business Line here on Saturday.

The capital infusion later this month would take the Tier-I capital to a level closer to 9 per cent.

Mr Nair said that the bank had headroom of Rs 4,000 crore towards Tier-II capital, but would look at raising capital under this head only in the next fiscal (2011-12). Union Bank of India had, during this fiscal, raised resource from abroad through Medium Term Notes (MTN).

Meanwhile, on credit growth, Mr Nair said that the bank would end the current fiscal with credit growth of 22-23 per cent.