UNION BANK OF INDIA
Union Bank of India is one of the largest Indian government-owned banks under the ownership of Ministry of Finance, Govt. of India. They have 120+ million customers and a total business of US$106 billion. It was founded on 11 November, 1919 in Mumbai, India. It a listed entity and the Government of India hold 89.07% share in Bank’s total share capital. Over the working years, the bank has developed a network of 9500+ domestic branches, 13300+ ATMs, 11700+ BC point with more than 75000 currently working for the bank. For the FY20, Union Bank of India recorded an annual revenue of $6.1 Billion in 2020.
As a part of their business ethics, the bank puts emphasis on customer satisfaction and its effectively uses its capital to generate profit- RoCE which has been improved in the last 2 years. The bank expects all its members of the Core Management to exercise good judgement, to ensure the interests, safety and welfare to customers, employees and other stakeholders. The Core Management is expected to comply with the applicable laws, regulations, rules and regulatory orders by providing reports.
The Bank has more global penetration through internet banking and has stock with low PE. Recently, they have appointed A K Vinod as a chief compliance officer. LIC has up its stake in Union Bank of India to over 5%. Its shareholding pattern consist of: Promoters having 89.07% shares, FIIs having 0.66% shares, DIIs having 4.37% shares and Public having 5.90% shares.
For the quarter ending 31-03-2021, the Bank has shown a net revenue from operations as Rs.15622.02 Cr. which is 9.2% lower than Q3 value (Rs.17220.38 Cr.). Their net profit has shown a massive increase of 76.42% against Q3 and now stands at Rs.1269.18 Cr. Their EPS values also showed a slight increase and stands at Rs.1.98 against Rs.1.12 in Q3.
Overall, their Q-o-Q growth is recorded to be 76.42% against 34.75% in the last quarter. Their Y-o-Y growth is -191.75%. Commenting on the financial results for the FY21, the bank has performed excellently in some aspects but has lacked at some places like net revenue and total income. However, for the last quarter of FY21, they have shown a huge jump but not too much on yearly basis. The bank’s future growth plans seem promising.
