Union Bank of India has shown healthy growth in the fourth Quarter of FY23 as compared to FY22. The bank has successfully reduced it’s Net Non Performing Assets and Gross Non-Performing Assets. The CASA has always shown sharp growth. There was an increase in loan advances as well as deposits of the bank. The recovery of advances was more than the estimated value.
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About Union Bank of India
Union Bank of India, commonly referred to as Union Bank or UBI, is an Indian public sector bank headquartered in Mumbai. It has 120+ million customers and a total business of US$106 billion. After the merging with Corporation Bank and Andhra Bank, which came into effect on 1 April 2020, the merged entity became the one of the largest PSU banks in terms of branch network with around 8700+ branches.
Four of these are located overseas in Hong Kong, Dubai, Antwerp, and Sydney. UBI also has representative offices at Shanghai, Beijing and Abu Dhabi. UBI operates in the United Kingdom through its wholly owned subsidiary, Union Bank of India (UK). The bank has a network of 8700+ domestic branches, 11100+ ATMs, 15300+ Business Correspondent Points serving over 120 million customers with 75000+ employees.
Quarter Results of Union Bank of India
Public sector lender, Union Bank of India registered strong double-digit growth in the fourth quarter of FY23. PAT jumped by a whopping 61.18% YoY and 23.95% QoQ to ₹2,782 crore. In the quarter, the bank witnessed strong growth in terms of advances and deposits year-on-year, while a sharp decline has been seen in gross NPA.
Interest margins expanded further YoY. Union Bank’s PAT was at ₹1,440 crore in Q4FY22 and ₹2,245 crore in Q3FY23. However, net interest income (NII) which is the difference between interest earned and expended, came in at ₹8,251 crore in Q4FY23 – rising by 17.92% from NII of ₹6,769 crore in Q4FY22 — but down by 4.38% from ₹8,628 crore in Q3FY23. Net interest margins (NIM) for the quarter stood at 2.98%, expanding by 13 bps from 2.75% in Q4FY23 but down by 23 bps from 3.21% in Q3FY23.
In the quarter, the bank registered 13.05% YoY and 0.73% QoQ growth in global advances to ₹8,09,905 crore, while deposits stood at ₹11,17,716 crore up by 8.26% YoY and 4.95% QoQ. The bank’s credit in retail, agri, and MSME (RAM) segments increased by 14.94% YoY, where 17.19% growth in Retail, 14.20% growth in Agriculture, and 13.06% growth in MSME advances is achieved on YoY basis.
RAM advances as a percent of domestic advances stood at 55.61%. While the bank’s CASA deposits have increased by 4.47% YoY. In terms of asset quality, gross NPA dipped by a whopping 358 bps to come at 7.53% in Q4FY23 as against 11.11% in Q4FY22. Gross NPA was down by 40 bps from 7.93% in Q3FY23. Net NPA also plunged by 198 bps YoY and 44 bps QoQ to 1.70%. The provision coverage ratio expanded to 90.34% in the quarter.
Market Status of Union Bank
Union Bank India share has a market capitalization of Rs 52,217.47 Cr. and its market cap rank is 11. Union Bank India share price was Rs 76.40 as on 05 May, 2024, 03:59 PM IST. Union Bank India
share price was down by 1.29% based on previous share price of Rs. 75.75. In last 1 Month, Union Bank India share price moved up by 13.52%. Union Bank India share price saw a 52 week high of Rs 96.40 and 52 week low of Rs 33.50. Top 10 Peers for Union Bank India are Indian Overseas Bank, IDBI
Bank Ltd., Punjab National Bank, Canara Bank, Indian Bank, UCO Bank, Bank of India, Central Bank of India, Punjab & Sind Bank and Bank of Maharashtra. Stock’s PE is 7.20 and Price to Book Ratio of 0.75 as well as Dividend Yield of 2.49 and also EPS (trailing 12 month) of Union Bank India share is 10.62.
Promoter holding has not changed in last 9 months and holds 83.49 stake as on 31 Mar 2024. Domestic Institutional Investors holding has gone up from 7.04 (31 Mar 2022) to 8.2 (31 Mar 2024). Foreign Institutional Investors holding has gone up from 1.19 (31 Mar 2022) to 1.66 (31 Mar 2024). Other investor holding have gone down from 8.28 (31 Mar 2022) to 6.65 (31 Mar 2024).
