MADRID –  The board of Spain's Banco Popular has approved a capital increase of up to 2.5 billion euros ($3.2 billion), a source close to the process said on Sunday.

The bank's directors also agreed that Popular would remain independent rather than searching for a partner, the source said.

Popular declined to comment. ($1 = 0.7773 euros) (Reporting and editing By Jesus Aguado, Writing by Paul Day)