Union Bank of India, incorporated in 1919, is a banking company (having a market capitalization of Rs 25220.22 Crore).
Major revenue/income segments of Union Bank of India include interest and discounts on advances and bills, income from investments, interest on balances with RBI and other interbank funds and interest for l year ending March 31, 2021.
For the quarter ended 31-03-2022, the company reported consolidated total revenue of Rs 19,353.85 Crore, down -4.35% from last quarter, total revenue of Rs 20,233.19 Crore and down -7.41% compared to the same quarter last year. Total income of Rs 20902.48 Crore. The bank reported a net profit after tax of Rs 1557.09 Crore in the last quarter.
UNBK had a mixed quarter with earnings beaten by cash gains, lower operating expenses and tax expenses. Provisions continued to be elevated with new slippages up 66% QoQ due to a large corporate account, while the outlook looks better as evidenced by a further reduction in SMA/restructured loans. Loan growth accelerated and was supported by all segments – corporate, agriculture, retail and MSMEs. It reduces PAT estimates by 17% and 13% for FY23 and 24, respectively, due to lower other income (rising bond yields) and estimates a RoA/RoE of 0.7%/12.4 % for UNBK in FY24. It maintains BUY with a TP of INR50 (based on 0.6x FY24E ABV)
Promoters held 83.5% of the company’s capital as of June 30, 2021, while FIIs held 1.7%, DIIs 6.8% and the public and others 8%.
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