Megabank Mitsubishi UFJ Financial Group Inc plans to boost its capital by about 1 trillion yen ($11 billion) through public offerings of common shares by the end of the year, the Nikkei business daily said.

The bank, with the help of brokerage houses, is conducting market research in Japan and abroad for the planned offering of as many as 2.5 billion shares, the Nikkei said without citing sources.

The offer price is yet to be determined, but the capital increase would come to 1.27 trillion yen based on the bank's closing price of 508 yen on Friday, the daily said.

This would make it the largest capital increase by common stock in Japan and is in response to global regulatory pushes for improved capital bases at banks.

Mitsubishi UFJ Financial Group (MUFG) had a capital adequacy ratio of 12.9 percent at the end of June, the paper said.

The planned offering will raise the bank's core equity capital ratio by 1 percentage point from the current 5.8 percent.

MUFG implemented an 800 billion yen capital increase by offering common stock and preferred shares from December 2008 to January 2009.

Other institutions followed suit, with Sumitomo Mitsui Financial Group Inc conducting an 861 billion yen common stock capital boost, the Nikkei said.

($1=90.16 Yen)

(Reporting by Isheeta Sanghi in Bangalore; Editing by Unnikrishnan Nair)

Japan Nikkei 225