Union Bank of India’s Stock Rockets, Delivering Multibagger Returns of Over 111% in the Past Year, Far Outpacing the Benchmark Nifty 50’s 24% Gain During the Same Period.
Shares of Union Bank surged by 6 percent in early trading on February 21, following the announcement of a Rs 3,000-crore qualified institutional placement (QIP) at a floor price of Rs 142.78 per share. This floor price represented a slight premium over the previous closing price of Rs 141.10. The bank disclosed the opening of the issue on February 20.
In a stock exchange filing, Union Bank stated, “We wish to inform you that the Committee of Directors for Raising Capital Funds (“Committee”) has at its meeting held today i.e. February 20, 2024, approved the raising of funds for an amount not exceeding Rs 3,000 crore through issue of equity shares through Qualified Institutions Placement subject to the requisite regulatory /statutory approvals.”
As of 9:41 am, Union Bank shares were trading 4 percent higher at Rs 147.35 on the National Stock Exchange (NSE). Over the past year, the stock has delivered multibagger returns, soaring by more than 111 percent. This impressive performance significantly outpaced the benchmark Nifty 50, which rose by 24 percent during the same period.
In the quarter ended December 2023, Union Bank reported a significant 60 percent surge in net profit, reaching Rs 3,590 crore, driven by reduced provisioning and enhanced interest income.
The bank’s total income for the period rose to Rs 29,137 crore from Rs 24,154 crore in the corresponding period last year. Notably, its interest income also witnessed a notable improvement, climbing to Rs 25,363 crore compared to Rs 20,883 crore a year ago.
Union Bank’s robust financial performance underscores its resilience and effective management amid challenging market conditions.
Moreover, in the February 2024 quarterly review, the PSU bank secured entry into the prestigious MSCI Global Standard index, reflecting its growing prominence and strengthening position in the global financial landscape.
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