MUMBAI: City Union Bank will raise Rs 300 crore by way of private placement of shares with qualified institutional buyers.

Shareholders of the bank in August had approved a proposal to raise Rs 300 crore by allotting shares to potential buyers, City Union Bank said in a filing to the Bombay Stock Exchange today.

The proposed private placement would be completed within 12 months from the date of the resolution passed, the filing added.

Shares of City Union Bank were trading at Rs 29.65 on the BSE, down 1.50 per cent from previous close.