- Union Bank of India’s net income in the 4th quarter was 33.1 billion rupees, representing a 19% increase year over year (y/y).
- The bank’s net income fell short of the estimated 36.69 billion rupees.
- The gross non-performing assets stood at 4.76%, a slight decrease from 4.83% in the previous quarter (q/q).
- Provisions were made at 12.6 billion rupees, a markdown of 28% from the previous quarter.
- Interest income saw an incremental rise of 20% y/y, hitting 263.5 billion rupees.
- Conversely, interest expense had also risen by 23% y/y, amounting to 169.1 billion rupees.
- Other income was at 47.1 billion rupees, denoting an 11% decrease y/y.
- The bank set aside provision for loan losses at 14.9 billion rupees, marking a 21% increase from the last quarter.
- A dividend of 3.60 rupees per share was declared.
- Operating profit for Union Bank of India dipped by 4.3% y/y, rounding off at 65.3 billion rupees.
- The outlook from various perspectives include 9 buys, 1 hold, and 1 sell.
Union Bank Of India on Smartkarma
Analysts on Smartkarma are closely covering Union Bank of India, providing valuable insights for investors. Brian Freitas, in his report “Union Bank of India (UNBK IN) Placement: Using Index Inclusion Well,” highlights the bank’s plan to raise INR 30bn via a QIP. With the stock trading cheaper than its peers and index inclusion imminent, the timing seems favorable for the issuance. Sumeet Singh, in the report “Union Bank of India QIP – Well-Flagged and Just in Time for Index Inclusion,” discusses the dynamics of the US$370m QIP. This well-flagged move aims to enhance free float and capital at a strategic juncture for the bank.
Furthermore, Brian Freitas sheds light on broader market trends in his report “AMFI Stock Reclassification Preview (Dec 2023): MidCap to LargeCap Migrations Outperforming.” He notes the migration of 41 stocks across market cap segments, with potential implications for indices like NIFTY and Nifty Next 50. The report emphasizes the outperformance of stocks moving from MidCap to LargeCap, indicating positive market dynamics that could impact Union Bank of India’s positioning in the market.
A look at Union Bank Of India Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 5.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Union Bank Of India is poised for a positive long-term outlook, as indicated by its high Smart Scores across various key factors. With top scores in Value, Dividend, Growth, Resilience, and Momentum, the bank is displaying strength and stability in its overall operations. Union Bank’s robust performance across these areas reflects its solid foundation and potential for sustained growth in the dynamic banking sector.
Known for providing a comprehensive range of banking services across India, Union Bank Of India stands out for its commitment to excellence in retail and commercial banking, investment management, and other financial services. With a strong focus on customer satisfaction and innovative banking solutions, the bank’s high Smart Scores underscore its position as a leading player in the industry, well-equipped to capitalize on opportunities and navigate challenges in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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