Union Bank of India: Union Bank’s shares surged by 6 percent in early trading on February 21st, following the announcement by the PSU lender of a Rs 3,000-crore qualified institutional The bank announced a qualified institutional placement (QIP) at a floor price of Rs 142.78 per share. The floor price represents a slight premium compared to the previous closing price of Rs 141.10. Additionally, the bank disclosed the commencement of the issue on February 20th.
In a filing with the stock exchange, the bank stated, “We are pleased to inform you that the Committee of Directors for Raising Capital Funds (“Committee”), in its meeting held today, February 20, 2024, has approved to raise funds to Rs 3,000 crore through the issuance of equity shares via Qualified Institutions Placement, subject to obtaining the necessary regulatory and statutory approvals.” – Union Bank of India
As the clock struck 9:41 am, Union Bank shares showcased a 4 percent uptick, reaching Rs 147.35 on the NSE. The stock has delivered multi-bagger returns in the last year, rising over 111 percent. In comparison, the benchmark Nifty 50 has surged by 24 percent during this period. In the quarter ending December 2023, Union Bank reported a significant 60 percent increase in net profit, reaching Rs 3,590 crore. This surge was attributed to reduced provisioning and improved interest income.
The bank’s total income saw a notable rise to Rs 29,137 crore, marking an increase from Rs 24,154 crore recorded a year earlier. Furthermore, its interest income showed improvement, reaching Rs 25,363 crore compared to Rs 20,883 crore in the previous year.
In the latest quarterly review conducted in February 2024, the PSU bank was newly included in the MSCI Global Standard index.
