Union Bank of India

(Originally incorporated on November 11, 1919 under the Companies Act, 1913 and Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 on July 19, 1969)

Head Office & Corporate Office: 239, Vidhan Bhavan Marg, Nariman Point, Mumbai 400 021, Maharashtra, India
Phone: (91 22) 2289 2000; Fax: (91 22) 2288 1979; Email: rbmenon@unionbankofindia.com;
Website: www.unionbankofindia.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF UPTO 45,000,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS.110 PER EQUITY SHARE AGGREGATING RS. 4,950 MILLION (THE "ISSUE") BY UNION BANK OF INDIA ("THE BANK" OR "THE ISSUER"). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 40,500,000 EQUITY SHARES OF RS. 10 EACH (THE "NET ISSUE") AND A RESERVATION FOR EMPLOYEES OF 4,500,000 EQUITY SHARES OF RS. 10 EACH, AT THE ISSUE PRICE.

THE ISSUE WILL CONSTITUTE UPTO 8.91% OF THE FULLY DILUTED POST-ISSUE PAID-UP CAPITAL OF THE BANK.

THE ISSUE PRICE OF THE EQUITY SHARES IS RS. 110 PER EQUITY SHARE WHICH IS 11 TIMES THE FACE VALUE OF THE EQUITY SHARES.

The Issue was made through the 100% Book Building Process wherein 50% of the Net Issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers (including 5% of the QIB portion that would be specifically reserved for Mutual Funds). Further, not less than 15°k of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. Up to 4,500,000 shares shall be allotted on a proportionate basis to Eligible Employees.
The Board of Directors of Union Bank of India wish to thank the investing public for their response to the Issue which opened for subscription on February 15, 2006 and closed on February 21, 2006. The Issue received 146225 applications for 1331541300 Equity Shares resulting in 29.59 times subscription. The details of the applications received In the Issue from Qualified Institutional Buyers ("QIBs"), Non-Institutional Bidders, Retail Individual Bidders and Employee categories are as under:

Final Demand
The final demand at different bid prices is as under:

The Basis of Allotment was finalised in consultation with the Designated Stock Exchange - Bombay Stock Exchange Limited ("BSE") on Monday, March 6, 2006.

A) Allocation to Employees
The Basis of Allotment to the Employees category, who bid at the cut-off price or at the Issue Price of Rs. 110/- per Equity Share, was finalized In consultation with BSE. The Bank received 13244 valid applications for 7803900 Equity Shares as against a reservation of 4,500,000 Equity Shares resulting in subscription of 1.73 times. The indicative category wide details of the Basis of Allotment are given below:

B) Allocatlon to Retail Investors
The Basis of Allotment to the Retail Individual Bidders, who bid at the cut-off price or at the Issue Price of Rs. 110 per Equity Share, was finalized in consultation with BSE. The Bank received 129524 valid applications for 36535750 Equity Shares in this category resulting in 2.58 times subscription. The total number of Equity Shares allotted in this category is 14175000: The category wide details of the Basis of Allotment are given below:

C) Allocation to Non Institutional Bidders
The Basis of Allotment to the Non Institutional Bidders, who bid at the cut-off price or at the Issue Price of Rs. 110 per Equity Share, was finalized in consultation with ESE. The Bank received 3260 valid applications for 60206050 Equity Shares in this category resulting in 9.91 times subscription. The number of shares allotted to Non-Institutional Bidders is 6075000. The indicative category wide details of the Basis of Allotment are given below:

D) Allocation to QIBs
Allocation to QIBs was done on a proportionate basis. As per the SEBI guidelines, Mutual Funds were initially allotted 5% (1012500 Equity Shares) of the quantum of shares available (20250000 Equity Shares) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining 19237500 Equity Shares on a proportionate basis. The sectoral cap and other limits applicable to the holding of shares in a corresponding new bank, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, have been taken into account while allotting shares.

The Board of Directors of the Bank at a meeting held at Mumbai on March 7, 2006 approved the Basis of Allotment of Equity Shares in the Issue and recommended the allotment of Equity Shares to successful applicants.

The Refund Orders / allotment advice in respect of refunds due to applicants has been dispatched to the addresses of the investors as registered with the depositories. In case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below. The Refund Orders have been over-printed with the Bank Mandate details as registered, If any, with the depositories. The shares allocated to the successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Bank is taking steps to get the Equity Shares admitted for trading on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from the date of approval of Basis of Allotment.

INVESTORS PLEASE NOTE
These details of the allocation will also be available on the website of the Registrar to the Issue, MCS Limited, at http://www.mcsind.com All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting the full name of the First/Sole applicants, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at the address given below

MCS LIMITED (Unit: UBI-FPO)
Sri Padmavati Bhavan, Plot No. 93, Road No. 16, MIDC Area, Andheri (East), Mumbai 400093.
Tel: (91 22) 5502 5235; Fax (91 22) 2820 1783, E-mail: ubifpo@mcsind.com; Website: http://www.mcsind.com

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE PROSPECTS OF UNION BANK OF INDIA.