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Union Bank of India is a Public Sector Bank based in Mumbai, India, with the stock ticker UNIONBANK. The bank holds a substantial market capitalization of Rs. 89,908.7 Crores and reported a revenue of Rs. 127,498.4 Crores over the last twelve months.
The bank operates through multiple segments, including Treasury Operations, Retail Banking Operations, Corporate and Wholesale Banking, and Other Banking Operations.
Union Bank of India offers a diverse range of banking products and services:
Retail Banking Products: Savings and current accounts, term deposits, various types of loans including home, vehicle, education, and personal loans, loans against property, and specialized loans for senior citizens and pensioners.
Corporate Services: This includes corporate loans such as export schemes, lines of credit, trade finance, and working capital loans. They also offer services like debt structuring, loan syndication, cash management, foreign exchange services, and NRI banking.
Additional Services: The bank also provides mutual funds, various insurance products, online trading services, tax-saving deposits, and safe deposit locker services.
Union Bank of India has embraced technology by offering app, internet, ATM, and SMS banking services, alongside point-of-sale terminals and immediate payment services.
The bank has a history dating back to 1919 and has maintained a dividend yield of 6.21% per year, with a recent dividend payout of Rs. 6.6 per share. Over the past three years, the company has experienced a remarkable 52.8% growth in revenue and has reported a profit of Rs. 16,229.8 crores in the past four quarters, although it has diluted shareholdings by 11.7% during this period.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Balance Sheet: Strong Balance Sheet.
Profitability: Recent profitability of 13% is a good sign.
Size: It is among the top 200 market size companies of india.
Growth: Good revenue growth. With 52.8% growth over past three years, the company is going strong.
Technicals: Bullish SharesGuru indicator.
Dividend: Pays a strong dividend yield of 6.21%.
No major cons observed.
Comprehensive comparison against sector averages
UNIONBANK metrics compared to Banks
| Category | UNIONBANK | Banks |
|---|---|---|
| PE | 5.88 | 8.25 |
| PS | 0.75 | 1.02 |
| Growth | 11.5 % | 9.5 % |
UNIONBANK vs Banks (2021 - 2025)
Summary of Union Bank of India's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Jan 24
The management of Union Bank of India provided an optimistic outlook, reaffirming confidence in meeting/exceeding FY24 guidance while highlighting key performance metrics and strategic priorities:
Key Outlook & Guidance:
Major Highlights:
FY25 Priorities: Focus on sustaining NIM, improving fee income, and leveraging digital channels for customer acquisition/retention.
Last updated: Jan 24
Major Questions and Answers from Union Bank of India's Q3 FY24 Earnings Call
Question on wage provisions and pension impact
Full Question: "My first question is on the wage provision. What has that increased to? Does the catch-up provision include pension adjustments?"
Answer: The bank increased monthly wage provisions from Rs.110"“125 crore to Rs.130 crore. A differential provision of Rs.225 crore was made for previous months. Pension-related provisions are pending final actuarial guidelines and will be addressed in Q4.
Question on Loan-to-Deposit Ratio (LDR) targets and regulatory discussions
Full Question: "Would you maintain LDR at current levels? Any targets for Q4 or FY25?"
Answer: The bank aims to maintain an LDR of 77"“78% and Liquidity Coverage Ratio (LCR) at 125%, aligning with regulatory limits. No direct regulatory pressure was indicated.
Question on Net Interest Margin (NIM) sustainability
Full Question: "Do you expect NIM moderation from 3.1% due to deposit competition?"
Answer: NIM guidance remains at 3% for FY24, supported by MCLR repricing (48"“49% of loans), stable deposit costs, and liquidity optimization.
Question on credit growth exceeding guidance
Full Question: "Advances grew 11.4% Y-o-Y vs. 10"“12% guidance. Will FY24 growth surpass guidance?"
Answer: The bank reaffirmed 10"“12% FY24 credit growth guidance, emphasizing conservative yet robust performance across agriculture (17.88% growth) and gold loans (53% Y-o-Y).
Question on Gross NPA recovery and slippages
Full Question: "Recovery stood at Rs.13,800 crore and slippages at Rs.7,960 crore for 9M FY24. Will FY24 targets be revised?"
Answer: The bank expects to surpass FY24 recovery (Rs.16,000 crore) and slippage (<Rs.12,000 crore) targets. Q3 recoveries totaled Rs.5,935 crore, including Rs.1,026 crore from written-off accounts.
Question on capital-raising plans
Full Question: "With share price gains, will you raise additional capital beyond the Rs.5,000 crore QIP?"
Answer: Board approval exists for Rs.8,000 crore equity raising. After the Rs.5,000 crore QIP, the remaining Rs.3,000 crore may be raised in FY24.
Question on Treasury income decline
Full Question: "Treasury income fell to Rs.611 crore in Q3. What drove this, and what's the outlook?"
Answer: Volatility in bond yields and RBI's OMO stance impacted Treasury income. The bank aims to maintain stable profitability by rebalancing holdings to higher-yield securities.
Question on RBI's higher risk weights for NBFCs
Full Question: "What is the impact of RBI's risk-weight norms on CRAR?"
Answer: The norms increased risk-weighted assets by Rs.26,000"“27,000 crore, reducing CRAR by 60 bps. NBFC loan repricing (15"“20 bps hikes) is underway to offset this.
Question on credit cost trajectory
Full Question: "Credit cost improved to 0.56% in Q3. What's the FY25/26 outlook?"
Answer: Credit cost is expected to stabilize at ~50 bps, aided by controlled slippages (Rs.8,000 crore in 9M FY24) and improving asset quality (GNPA at 4.83%).
Question on deposit rate hikes and cost trends
Full Question: "Why were term deposit rates raised? Will costs rise further?"
Answer: Rate hikes aligned with market trends. Cost of deposits rose 6 bps QoQ but is manageable due to excess SLR (Rs.60,000 crore) and liquidity buffers.
Question on cost-to-income ratio initiatives
Full Question: "How is the bank reducing cost-to-income ratio?"
Answer: Centralized processes, digital onboarding (25M users on Vyom app), and subsidiary-driven sales (UBISL) are key. The ratio remains among the lowest in the sector.
Question on ROA guidance
Full Question: "ROA reached 1.07% in Q3. Is 1%+ sustainable?"
Answer: The bank achieved its FY25 ROA target (1%) early and aims to sustain/improve it via higher NIMs, lower credit costs, and operational efficiency.
Analysis of Union Bank of India's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
| Description | Share | Value |
|---|---|---|
| Retail Banking Operations | 36.2% | 11.5 kCr |
| Corporate/Wholesale Banking | 35.8% | 11.4 kCr |
| Treasury Operation | 24.6% | 7.8 kCr |
| Unallocated | 2.0% | 632.1 Cr |
| Other Banking Operations | 1.5% | 465.2 Cr |
| Total | 31.7 kCr |
Investor Care | |
|---|---|
| Dividend Yield | 6.21% |
| Dividend/Share (TTM) | 6.6 |
| Shares Dilution (1Y) | 2.98% |
| Diluted EPS (TTM) | 21.49 |
Financial Health | |
|---|---|
| Debt/Equity | 0.00 |
| Debt/Cashflow | 0.00 |
Understand Union Bank of India ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| President of India | 74.76% |
| LIFE INSURANCE CORPORATION OF INDIA - ULIF00420091 | 6.35% |
| HDFC LARGE AND MID CAP FUND | 1.34% |
Distribution across major stakeholders
Distribution across major institutional holders
Valuation | |
|---|---|
| Market Cap | 98.13 kCr |
| Price/Earnings (Trailing) | 6.05 |
| Price/Sales (Trailing) | 0.77 |
| EV/EBITDA | 1.07 |
| Price/Free Cashflow | 4.43 |
| MarketCap/EBT | 4.36 |
Fundamentals | |
|---|---|
| Revenue (TTM) | 1.27 LCr |
| Rev. Growth (Yr) | 6.53% |
| Rev. Growth (Qtr) | -3.24% |
| Earnings (TTM) | 16.23 kCr |
| Earnings Growth (Yr) | 27.33% |
| Earnings Growth (Qtr) | -2.64% |
Profitability | |
|---|---|
| Operating Margin | 23.53% |
| EBT Margin | 17.67% |
| Return on Equity | 1.14% |
| Return on Assets | 0.00% |
| Free Cashflow Yield | 22.57% |
Detailed comparison of Union Bank of India against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| SBIN | State Bank Of IndiaPublic Sector Bank | 7.29 LCr | 6.49 LCr | +4.54% | -1.73% | 9.03 | 1.12 | +14.51% | +24.82% |
| BANKBARODA | Bank Of BarodaPublic Sector Bank | 1.31 LCr | 1.51 LCr | +12.00% | -8.14% | 6.48 | 0.87 | +10.17% | +9.00% |
| PNB | Punjab National BankPublic Sector Bank | 1.17 LCr | 1.36 LCr | +6.92% | -26.94% | 7.39 | 0.86 | +15.81% | +128.11% |
| CANBK | Canara BankPublic Sector Bank | 89.3 kCr | 1.5 LCr | +10.65% | -84.35% | 5.19 | 0.6 | +12.15% | +20.93% |
| INDIANB | Indian BankPublic Sector Bank | 78.97 kCr | 70.32 kCr | +4.87% | +8.00% | 7.67 | 1.12 | +14.19% | +40.42% |
| BANKINDIA | Bank of IndiaPublic Sector Bank | 53.89 kCr | 76.56 kCr | +9.37% | -23.32% | 6.58 | 0.7 | +16.10% | +30.56% |
Updated Mar 28, 2025
Union Bank Of India shares closed at ₹119.15 on March 20, 2025, reflecting a decline of 0.42% from the previous closing price.
On March 17, 2025, Union Bank Of India shares experienced a decrease of -0.92% from the previous closing price, prompting cautious sentiment among investors.
The recent price movements suggest a slight downward trend, indicating cautious sentiment and a need for investors to monitor the stock closely.
Prabhudas Lilladher has initiated coverage on Union Bank of India with a 'BUY' rating, citing improved earnings quality due to reduced stress and provisions.
The bank's gross non-performing asset (GNPA) ratio has decreased significantly from 11.1% to 3.9%, indicating strong financial health.
Technical analysis indicates that Union Bank's share price has surpassed the 200-Day Moving Average, suggesting a positive price trend.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.