City Union Bank announced on Monday that it will raise ₹500 crore through the Qualified Institutional Placement (QIP) route to fund the company’s growth.

The board in a meeting approved the raising of additional capital via the QIP route in the amount of ₹500 crore, City Union Bank said in a regulatory filing.

The private sector lender said shareholder approval would be sought at the annual general meeting for the capital increase plan.

Last year, the bank got the go-ahead from shareholders for raising ₹500 crore via QIP but was unable to use it, she said.