UNION BANK OF INDIA

Union Bank of India is engaged in the Business of Banking Services, Government Business,Merchant Banking, Agency Business Insurance, Mutual Funds, Wealth Management etc.

Revenue Breakup

Corporate and Wholesale Banking -36%

Retail Banking-34%

Treasury-27%

Other Banking Operations-3%

Shareholding Pattern

-PUBLIC GROUP

-PROMOTER GROUP

Synopsis Of Financials

• Achieved highest ever operating profit of ₹8,113 crores, reflecting a 12.4% growth.
• Net profit stood at ₹4,720 crores, showing a significant year-on-year growth of 34.4%.
• ROA improved to 1.35% and ROE reached 19.10% for Q2 FY25.
• Capital adequacy ratio improved to 17.13%, with CET ratio increasing to 13.88% as of September 2024.
• Gross NPA reduced by 202 basis points to 4.36%, while net NPA reduced by 32 basis points.
• PCR improved by 76 basis points to 92.79%.
• Cost-to-income ratio improved to 43.56% for Q2 FY25, down from 44.08% in the previous quarter.

Final Outlook

Union Bank of India’s financial performance for FY 2024 shows a strong recovery with improved profitability, driven by higher net interest margins (NIM) above 3% and robust asset quality. The bank’s gross non-performing asset (NPA) ratio declined, reflecting better management of bad loans. Bank reported rise in its total income 21.47% from FY 2023 and net profit increase by 61.84% in FY 2024 and show low NPA which indicate that the bank management is good and moving in the right direction. The price to book value and PE ratio is also lower than their competitors which show that share price is undervalued. It also show lower debt to equity ratio than thier peers bank which shows that bank have lower loans. As bank is showing profit and show strong financial growth year on year and have international presence also I recommend to BUY the stock as of now the PE is also low and stock price almost fallen almost 30% from july 2024 till october 2024.

I would give buy recommendation for this stock