New Delhi: State-owned UCO Bank on Thursday said it has got board approval for raising Rs1,000 crore through sale of shares on private placement basis to fund business growth.

The board of the bank, in its meeting held on Thursday, also approved raising Rs500 crore from tier-II bonds.

The equity capital of Rs1,000 crore would be raised through Qualified Institutions Placement (QIP), UCO Bank said in a regulatory filing. However, it did not specify the timeline.

The board also cleared a proposal to raise capital through issue of up to 20 crore shares under Employee Stock Purchase Scheme (ESPS), the filing said.

Shares of the bank closed at Rs20.80 per unit, up 0.73%, on the BSE.

At the current market price, the bank would raise about Rs400 crore through ESPS.