Multibagger PSU Bank To Consider Results, Dividend On May 10; Buy For TP Rs 180: ICICI Direct

Union Bank of India will hold its meeting of Board of Directors on May 10, 2024 to consider financial results and recommend dividend for FY 2023-24, if any. Last trading price of Union Bank of India share on BSE is Rs 154.65 per share with marginal intraday rally of 0.26%. Union Bank of India shares offered attractive return of 102% in last 1-year and 46% in last 1-year.

It is worth mentioning here that FII/FPI have increased holdings from 3.97% to 6.75% in March 2024 quarter. Life Insurance Corporation Of India (LIC) has 5.83% stake in Union Bank of India the PSU insurer holds 445,332,059 shares of the bank. More details below:

Union Bank of India To Consider Results, Dividend: As per the regulatory filing of the PSU dated May 2, 2024, "This is to inform you that a meeting of the Board of Directors of the Bank is scheduled to be held on Friday, May 10, 2024 inter-alia:
1. To consider the Audited Financial Results (Standalone and Consolidated) of the Bank for the Quarter/Year ended on March 31, 2024.
2. To recommend Dividend for the FY 2023- 24, if any, subject to obtaining the necessary statutory approvals."

Union Bank of India Share Performance & Return: The 52-week high price of Union Bank of India share on BSE is Rs 163.15 apiece (as on 05/04/2024) and 52-week low price is Rs 68.00 per share (as on 26/06/2023), respectively. Union Bank of India has a market capitalisation of Rs 1,18,053.71 crore. Union Bank of India shares jumped over 8% in last 2-weeks, soared 300% in last 2-years, and gave return of 350% in last 3-years.

ICICI Direct Gives Buy: The analyst said, "At CMP, the stock is trading 0.9x FY26E ABV which seems reasonable with steady growth to drive valuation. Assigning a multiple of ~1.1x FY26E BV, we ascribe target of Rs 180 per share and a BUY rating." Focus on persistent business growth with steady margins to aid operational performance, while modest credit cost is seen to push RoA at 1-1.1% in FY24-26E. The analyst has given a target time of 6 to 12 months for the stock to achieve the target price.

Union Bank of India Dividend History: Union Bank of India announced 20 dividends since June 6, 2003. In last 12 months, Union Bank of India announced an equity dividend amounting to Rs 3.00 per share. At the current share price of Rs 154.6500, Union Bank of India offers a dividend yield of 1.94%.

Union Bank of India Shareholding: Promoters have decreased holdings from 76.99% to 74.76% in March 2024 quarter. FII/FPI have increased holdings from 3.97% to 6.75% in March 2024 quarter. Number of FII/FPI investors increased from 292 to 568 in March 2024 quarter. Mutual Funds have increased holdings from 3.09% to 3.39% in March 2024 quarter. Number of MF schemes increased from 28 to 32 in March 2024 quarter. Institutional Investors have increased holdings from 16.25% to 18.99% in Mar 2024 quarter, according to Trendlyne.

Union Bank Of India Q3 Results: The leading public sector lender on Friday i.e. January 20, 2024 declared a surge of 59.9% year-on-year (YoY) in its net profit to Rs 3,589.9 crore for Q3 ended December 31, 2023 as against the net profit of Rs 2,244.8 crore in the corresponding quarter of last year, as per the BSE filing of the bank.

Union Bank's Net interest income (NII), difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, soared 6.3% to 9,168 crore as compared to Rs 8,628.1 crore in the similar quarter of last year. The state-owned bank's gross non-performing asset (GNPA) arrived at 4.83% for the December quarter as against 6.38% in the September quarter. Net NPA arrived at 1.08% as compared to 1.30% quarter-on-quarter (QoQ).

About: Union Bank of India is one of the leading public sector banks of the country. The Bank is a listed entity, and the Government of India holds 76.99 percent in Bank's total share capital. The Bank, having its headquarters at Mumbai (India), was registered on November 11, 1919 as a limited company.

Disclaimer: The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.