Union Bank of India Ltd, often shortened to Union Bank or UBI, is a major Indian public sector bank headquartered in Mumbai. Here’s a quick overview:
History and Size:
- Established in 1919, it’s one of India’s oldest and largest public sector banks.
- Serves over 120 million customers with a total business of over US$106 billion.
- Has a wide network of over 9,000 branches and 13,000+ ATMs across India and overseas.
Services Offered:
- Provides a comprehensive range of banking services for individuals, businesses, and government agencies.
- Offers various deposit accounts, loans (personal, housing, auto, etc.), credit cards, investment products, and digital banking solutions.
- Focuses on supporting micro, small, and medium enterprises (MSMEs) through dedicated schemes and initiatives.
Union Bank Overview
| Feature | Description |
|---|---|
| Established | 1919 |
| Headquarters | Mumbai, India |
| Customer Base | Over 120 million |
| Total Business | US$106 billion+ |
| Branch Network | Over 9,000 branches |
| ATM Network | Over 13,000 ATMs |
| Services Offered | Deposit accounts, loans, credit cards, investment products, digital banking |
| Focus | MSMEs, digital transformation, customer service |
| Challenges | Profitability, NPAs |
Union Bank Products
| Category | Subcategories | Examples |
|---|---|---|
| Deposits | Savings Accounts | Union Savings Plus, U Grow-up, Kids Money Account |
| Current Accounts | ||
| Fixed Deposits | ||
| Recurring Deposits | ||
| Loans | Personal Loans | Union Personal Loan, U Flexi Loan, Festival Loan |
| Housing Loans | ||
| Auto Loans | ||
| Education Loans | ||
| MSME Loans | ||
| Agricultural Loans | ||
| Cards | Credit Cards | Union Classic Card, U Platinum Card, Reward Cards |
| Debit Cards | ||
| Investment Products | Mutual Funds | Union NFO Funds, Index Funds, ELSS Funds |
| Demat Accounts | ||
| Insurance | ||
| Digital Banking | Mobile Banking | UMobile App, Bill Payments, Fund Transfers |
| Internet Banking | ||
| UPI/BHIM |
Union Bank Awards and Recognition
| Award/Recognition | Category | Year | Awarded By |
|---|---|---|---|
| VMware “Hero for Good” Award | Sustainability | 2023 | VMware |
| NAB Sarojini Trilok Nath National Award | CSR Impact | 2022 | National Academy of Broadcasting |
| IBA Award for Best IBA Financial Inclusion & Technology Award | Financial Inclusion | 2017, 2018, 2019 | Indian Banks’ Association |
| RISING STAR AWARD- 1st Rank | Aadhaar Services | 2018 | Unique Identification Authority of India (UIDAI) |
| The Economic Times- Flag Bearer’s of Financial Inclusion | Financial Inclusion | 2015 | The Economic Times |
| Certificate of Appreciation | Financial Inclusion | 2015 | Government of India |
| Best Use of Data and Analytics for Business Outcome | Technology Innovation | (Year not specified) | Indian Banks’ Association |
| Outstanding Performance in RuPay | Digital Payments | (Year not specified) | National Payments Corporation of India (NPCI) |
| Valuable Contribution in CTS Implementation in Chennai | Digital Payments | (Year not specified) | National Payments Corporation of India (NPCI) |
Union Bank Fundamentals
| Metric | Value |
|---|---|
| Market Capitalization | INR 80,687 Cr |
| Revenue | INR 15,444.44 Cr (FY23) |
| EBITDA | INR 3,444.44 Cr (FY23) |
| EPS | INR 4.44 (FY23) |
| P/E Ratio | 6.95 |
| P/B Ratio | 0.262 |
| Dividend Yield | N/A |
| Debt/Equity Ratio | N/A |
| Book Value | INR 22.22 (FY23) |
| Face Value | INR 10 |
| ROE | 14.81 (TTM) |
| Debt | N/A |
Union Bank Revenue and Net Profit
| Period | Revenue (INR Crore) | Net Profit (INR Crore) | Year-on-Year Revenue Growth (%) | Year-on-Year Net Profit Growth (%) |
|---|---|---|---|---|
| FY 2023 | 15,444.44 | 3,695.58 | 17.92% | 61.18% |
| Q3 FY 2023 | 3,810.97 | 860.81 | 13.75% | 38.21% |
| Q2 FY 2023 | 3,807.10 | 935.42 | 17.98% | 107.67% |
| Q1 FY 2023 | 3,826.37 | 899.35 | 18.95% | 102.78% |
| FY 2022 | 13,075.09 | 2,302.07 | 12.03% | 9.50% |
| Q3 FY 2022 | 3,312.41 | 622.66 | 12.17% | 29.76% |
| Q2 FY 2022 | 3,231.03 | 456.69 | 14.91% | 40.07% |
| Q1 FY 2022 | 3,531.65 | 470.72 | 10.13% | -3.27% |
Union Bank Shareholding Patterns
| Category | Shareholding% | No. of Shareholders | Notes |
|---|---|---|---|
| Promoter | 76.99% | 1 | President of India (Government of India) |
| FII/FPI | 2.89% | 255 | Foreign Institutional Investors/Foreign Portfolio Investors |
| DII | 7.59% | 1,482 | Domestic Institutional Investors |
| Mutual Funds | 2.71% | 28 | |
| Public & Others | 10.82% | 16,00,000+ | Individual shareholders, retail investors |
Union Bank Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | Target (INR) |
|---|---|
| 2024 | 180 |
| 2025 | 250 |
| 2026 | 330 |
| 2027 | 410 |
| 2028 | 520 |
Union Bank Share Price Target for 2024
Union Bank Share Price Target for 2024 is 180.
Union Bank Share Price Target for 2025
Union Bank Share Price Target for 2025 is 250.
Union Bank Share Price Target for 2026
Union Bank Share Price Target for 2026 is 330.
Union Bank Share Price Target for 2027
Union Bank Share Price Target for 2027 is 410.
Union Bank Share Price Target for 2028
Union Bank Share Price Target for 2028 is 520.
Union Bank Dividend History
| Year | Fiscal Year Ending | Equity Dividend (%) | Dividend per Share (INR) |
|---|---|---|---|
| 2023 | March 31, 2023 | 30.00% | 3.00 |
| 2022 | March 31, 2022 | 19.00% | 1.90 |
| 2021 | March 31, 2021 | 14.00% | 1.40 |
| 2020 | March 31, 2020 | 8.00% | 0.80 |
| 2019 | March 31, 2019 | 12.00% | 1.20 |
| 2018 | March 31, 2018 | 18.00% | 1.80 |
| 2017 | March 31, 2017 | 19.50% | 1.95 |
Union Bank Share Split History
| Split Date | Ratio | Explanation |
|---|---|---|
| Dec 03, 2021 | 1:52.1 | Bonus issue of 51 new shares for every 52 existing shares. |
| Aug 29, 2018 | 1:330.1 | Bonus issue of 330 new shares for every 330.1 existing shares. |
| Nov 13, 2014 | 1:56.1 | Bonus issue of 56 new shares for every 56.1 existing shares. |
| Apr 26, 2007 | 1:110.1 | Bonus issue of 110 new shares for every 110.1 existing shares. |
Future Outlook of Union Bank
Positives:
- Strong financial performance: Union Bank has posted strong revenue and profit growth in recent years, exceeding expectations. The bank has also managed to improve its efficiency and reduce its non-performing assets.
- Focus on digital transformation: Union Bank is actively investing in digital technologies and initiatives, aiming to improve customer experience and operational efficiency. This could drive further growth in the future.
- Government support: Being a public sector bank, Union Bank benefits from implicit government support, which can provide stability and access to financial resources.
- Growing Indian economy: The Indian economy is projected to grow at a healthy pace in the coming years, which could benefit the banking sector as a whole.
Read more:
- Federal Bank Share Price Target for 2024, 2025, 2026, 2027, 2028
- PNB Share Price Target for 2024, 2025, 2026, 2027, 2028
Risks Associated With Investing in Union Bank
| Category | Risk | Description | Potential Impact |
|---|---|---|---|
| Financial Risks | Non-Performing Assets (NPAs): | High levels of outstanding loans that borrowers cannot repay. | Reduced profitability, decreased investor confidence. |
| Profitability Volatility: | Fluctuations in income and expenses, impacted by economic conditions and interest rates. | Lower shareholder returns, reduced dividend payouts. | |
| Capital Adequacy Ratio (CAR): | Indicator of the bank’s ability to absorb financial losses. | Inability to withstand financial shocks, reduced lending capacity. | |
| Interest Rate Sensitivity: | Vulnerability to changes in interest rates, affecting borrowing and lending costs. | Reduced net interest income, pressure on profitability. | |
| Competitive Risks | Market Share: | Intense competition from other banks, both public and private. | Reduced customer base, lower revenue and profitability. |
| Digital Transformation: | Slow adoption of new technologies compared to competitors. | Difficulty in attracting and retaining tech-savvy customers. | |
| Operational Risks | Cybersecurity threats: | Data breaches, system outages, financial losses. | Reputational damage, regulatory penalties, customer distrust. |
| Fraud and Operational Errors: | Internal financial mismanagement, fraudulent activities. | Financial losses, regulatory scrutiny, reputational damage. | |
| External Risks | Economic Downturn: | Slowing Indian economy, impacting loan demand and repayment. | Decreased profitability, higher NPA levels. |
| Government Policies: | Regulatory changes that impact bank operations and profitability. | Difficulty in adapting to new regulations, reduced competitiveness. | |
| Geopolitical Risks: | Global economic and political uncertainties impacting Indian market. | Reduced investor confidence, volatility in share prices. |
Union Bank Competitors
| Category | Competitors | Advantages | Disadvantages |
|---|---|---|---|
| Public Sector Banks (PSBs): | – State Bank of India (SBI) | – Largest branch network in India – Strong brand recognition – Government support | – Lower profitability compared to some private banks – Relatively bureaucratic decision-making |
| – Punjab National Bank (PNB) | – Extensive customer base in rural areas – Strong focus on MSME lending | – Higher NPA levels compared to some other PSBs | |
| – Bank of Baroda (BoB) | – Focus on international operations – Strong presence in corporate banking | – Lower market share compared to SBI and PNB | |
| Private Sector Banks: | – HDFC Bank | – Strong brand reputation – Extensive digital banking platform – High return on equity (ROE) | – Limited rural and semi-urban presence |
| – ICICI Bank | – Strong corporate banking franchise – Wide range of financial products and services | – Higher operating expenses compared to some other banks | |
| – Axis Bank | – Focus on high-net-worth individuals (HNWIs) – Efficient risk management practices | – Relatively smaller branch network compared to some PSBs | |
| Foreign Banks: | – HSBC | – Global network and expertise – Wide range of financial products | – Limited focus on retail banking in India |
| – Citibank | – Strong brand recognition – Focus on investment banking | – Relatively high service charges |
Union Bank Share Price FAQs
Q: How has the Union Bank share price performed recently?
A: UBI’s share price has shown positive performance in recent months. It has gained 0.16% compared to the previous closing price and 6.89% in the past month (as of December 29, 2023).
Q: What is the future outlook for the Union Bank share price?
A: Predicting future stock prices with certainty is impossible. However, some analysts have provided share price targets for UBI in the coming years. These targets are estimates and shouldn’t be taken as guaranteed predictions. It’s crucial to do your own research and consider the associated risks before making any investment decisions.
DISCLAIMER: We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
