Union Bank of India, incorporated in the year 1919, is a banking company (having a market cap of Rs 36770.94 Crore).
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 21621.87 Crore, up 4.62 % from last quarter Total Income of Rs 20666.62 Crore and up 3.89 % from last year same quarter Total Income of Rs 20812.39 Crore. The bank reported net profit after tax of Rs 1510.68 Crore in latest quarter.
Investment Rationale
The brokerage raises FY22-24E EPS by 12-15%, factoring in higher other income and some moderation in LLP. However, the brokerage maintains Sell rating/UW in EAP, mainly due to its relatively weak asset-quality profile, sub-par growth/return ratios and capital position, which necessitate continuous equity dilution. Key upside risks: one-off gains from stake sales in the insurance business and slower-than-expected NPA formation.
Promoter/FII Holdings
Promoters held 83.49 per cent stake in the company as of 30-Sep-2021, while FIIs owned 6.55 per cent, DIIs 1.65 per cent.
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