Union Bank of India | Business Upturn

Union Bank of India clarifies on deposit variations amid media reports

Kinjal — Wed, 29 Apr 2026 18:20:38 +0000

Union Bank of India has addressed recent media reports concerning variations in deposits among certain private and public sector banks, including itself. The bank clarified that the reports appear to be based on an unverified letter, which contains factual inaccuracies. Union Bank emphasised that its financial statements undergo rigorous audits, with auditors issuing unmodified reports affirming their accuracy in compliance with regulatory and accounting standards.

The bank highlighted its continued focus on liability accretion, particularly through CASA (Current Account Saving Account) deposits. Strategic initiatives have been implemented to bolster this area, as detailed in the bank’s investor presentation. As of 28 April 2026, Union Bank reported a total deposit of ₹12,61,308 crore, with CASA deposits amounting to ₹4,30,833 crore. The average total deposit for the period from 1 April 2026 to 28 April 2026 stood at ₹12,65,339 crore, while the average CASA was ₹4,38,169 crore.

Union Bank noted that these figures surpass the average for the fourth quarter of the fiscal year 2025-26, indicating consistent growth and stability. The bank reassured stakeholders that any deposit movements following the financial year-end are typical within the banking industry.

The bank reiterated its commitment to governance, transparency, and regulatory compliance, urging stakeholders to rely on verified disclosures. Union Bank confirmed that the media report in question does not materially impact its financial position or operations.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Union Bank of India reports ₹5,316 crore net profit for Q4 FY2026

Arunika Jain — Thu, 23 Apr 2026 07:55:34 +0000

Union Bank of India has announced its financial results for the quarter ending March 31, 2026, revealing a net profit of ₹5,316 crore. This marks an increase from the ₹4,985 crore net profit reported in the corresponding quarter of the previous year.

The bank’s operating profit for the quarter stood at ₹7,955 crore, compared to ₹7,700 crore in the same period last year. For the full financial year ending March 2026, Union Bank of India reported an operating profit of ₹28,620 crore and a net profit of ₹18,697 crore.

The bank’s deposits grew by 2.72% year-on-year, while advances saw a significant increase of 9.74% year-on-year. The growth in Retail, Agriculture, and MSME (RAM) advances was recorded at 12.56% year-on-year.

Union Bank of India also reported improvements in its asset quality, with the Gross Non-Performing Assets (GNPA) ratio at 2.82% and the Net Non-Performing Assets (NNPA) ratio at 0.48%. The Provision Coverage Ratio (PCR) improved to 95.03%.

The bank’s Capital Adequacy Ratio (CRAR) was reported at 18.10%, with a Common Equity Tier 1 (CET-I) ratio of 15.69%.

In terms of profitability metrics, the bank’s Return on Assets (RoA) was 1.36%, and Return on Equity (RoE) was 18.04%. The Net Interest Income (NII) for the quarter was ₹9,406 crore, with a Net Interest Margin (NIM) of 2.64%.

Union Bank of India continues to expand its branch network, with a total of 8,697 branches and 8,656 ATMs across the country.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Union Bank of India announces financial results for Q2 FY24

Business Desk — Thu, 02 Apr 2026 16:18:36 +0000

Union Bank of India has released its financial results for the second quarter of the fiscal year 2024. The bank reported a significant increase in net profit, showcasing strong financial performance during the period.

The net profit for the quarter stood at ₹2,225 crore, marking a substantial growth compared to the previous year. This increase is attributed to higher net interest income and improved asset quality.

The bank’s net interest income rose to ₹7,500 crore, reflecting a robust growth driven by an increase in advances and a stable net interest margin. Additionally, the asset quality improved with the gross non-performing assets (NPA) ratio declining to 6.4% from 7.6% in the same quarter last year.

Union Bank of India also reported a capital adequacy ratio of 13.5%, which is well above the regulatory requirement, indicating a strong capital position. The bank continues to focus on strengthening its balance sheet and enhancing its digital capabilities to provide better services to its customers.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Union Bank of India promoter holds 74.76% equity shares as of March 2026

Kinjal — Thu, 02 Apr 2026 11:43:00 +0000

Union Bank of India has disclosed that its promoter, the President of India, held 5,70,66,60,850 equity shares, representing 74.76% of the bank’s total equity as of 31st March 2026. The disclosure was made under Regulation 31(4) of the SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011.

The bank confirmed that there was no encumbrance of shares, either directly or indirectly, during the financial year ending 31st March 2026. This information is crucial for stakeholders and investors as it reflects the promoter’s commitment to maintaining a significant stake in the bank.

Such disclosures are part of regulatory requirements to ensure transparency in shareholding patterns and to inform the public about any changes in the promoter’s shareholding.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Union Bank of India faces Rs 95.4 lakh penalty from Reserve Bank of India

Arunika Jain — Fri, 27 Mar 2026 12:32:26 +0000

The Reserve Bank of India (RBI) has imposed a penalty of ₹95,40,000 on Union Bank of India for failing to comply with certain regulatory directions. The penalty was communicated to the bank on 27th March 2026.

The violations pertain to the bank’s non-compliance with RBI’s directions on limiting the liability of customers in unauthorised electronic banking transactions. Specifically, Union Bank of India did not credit the amount involved in unauthorised electronic transactions to the customers’ accounts within 10 working days from the date of notification by the customers. Additionally, the bank failed to provide a direct link for lodging complaints with a specific option to report unauthorised electronic transactions on the home page of its website.

Further non-compliance was noted in the bank’s adherence to RBI’s directions on income recognition, asset classification, and provisioning related to advances and the automation of these processes.

Union Bank of India has stated that the impact of the penalty on its financial, operational, or other activities is not significant. The bank also mentioned that it has taken necessary preventive measures to avoid the recurrence of such instances in the future.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Union Bank of India raises Rs 3,000 crore through oversubscribed bond issue

Yash Agarwal — Fri, 20 Mar 2026 13:54:02 +0000

Union Bank of India has successfully raised ₹3,000 crore through the issuance of long-term bonds aimed at financing infrastructure and affordable housing projects. The bond issue, which opened and closed on 20th March 2026, attracted significant interest from Qualified Institutional Buyers, resulting in an oversubscription of 3.12 times against the base issue size of ₹3,000 crore.

The bank received total bids amounting to ₹9,379.82 crore, highlighting the strong demand for these bonds. Despite the high level of interest, Union Bank of India decided to accept bids only up to the base issue size of ₹3,000 crore. The bonds were issued at a cut-off coupon rate of 7.16% per annum.

The bonds are characterised as senior, rated, listed, unsecured, redeemable, taxable, and transferable long-term fully paid-up non-convertible bonds in the nature of debentures. A total of 3,00,000 bonds, each valued at ₹1,00,000, were issued.

The deemed date of allotment for these bonds is set for 24th March 2026. The issuance was conducted through the NSE Electronic Bidding Platform, where 48 bids were received, and 14 were accepted.

This fundraising initiative is part of Union Bank of India’s strategy to bolster its financial resources for infrastructure and affordable housing projects, reflecting its commitment to supporting economic development through strategic investments.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

MTNL defaults on Rs 9,188 crore bank obligations as of February 2026

Business Desk — Mon, 16 Mar 2026 05:57:09 +0000

Mahanagar Telephone Nigam Limited (MTNL) has defaulted on principal and interest payments totalling ₹9,188 crore to several banks as of 28 February 2026. The default covers loans from major lenders including Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab and Sind Bank, and Indian Overseas Bank.

The details reveal that the outstanding principal amount is ₹7,794.34 crore, with overdue interest of ₹1,393.39 crore. The total overdue principal stands at ₹2,095.72 crore. The largest outstanding amount is owed to Union Bank of India, with a total of ₹4,007.88 crore, including a principal of ₹3,334.57 crore and interest of ₹673.31 crore.

MTNL’s total financial indebtedness amounts to ₹36,216 crore, which includes bank loans of ₹9,188 crore, SG bonds worth ₹24,071 crore, and a loan from the Department of Telecommunications for paying SG bond interest amounting to ₹2,957 crore.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

This article is written by Business Desk and reviewed by Aman Shukla before publication.

Union Bank of India approves issuance of bonds up to ₹25,000 crore

Business Desk — Mon, 16 Mar 2026 05:05:33 +0000

Union Bank of India has announced plans to issue long-term bonds and green bonds totalling up to ₹25,000 crore. The decision was made during a meeting of the Committee of Directors for fund raising held on 16th March 2026.

The bank aims to raise up to ₹20,000 crore through long-term bonds in one or more tranches, specifically for financing infrastructure and affordable housing projects. As part of this plan, Union Bank of India may explore raising ₹7,500 crore, including a base issue of ₹3,000 crore and a green shoe option of ₹4,500 crore, with a tenor of 10 years before 31st March 2026. Additionally, the bank plans to issue green bonds or sustainable bonds amounting to ₹5,000 crore in one or more tranches.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Union Bank of India Q4FY25 business update: Total business surges by 7.82% YoY, reaching Rs 22.92 lakh crore

Aman Shukla — Fri, 04 Apr 2025 05:55:48 +0000

Union Bank of India has showcased impressive financial performance, with robust growth in advances and deposits for the fiscal year ending March 31, 2025. The bank’s total advances surged past ₹ 9,82,875 crores, reflecting an 8.62% year-on-year (Y-o-Y) growth. The significant increase in retail and RAM (Retail, Agriculture, and MSME) advances highlights the bank’s strategic focus on expanding its domestic loan portfolio.

Key Highlights of Union Bank of India’s Financial Performance

1. Total Business Growth

Total Business (Global): Reached ₹ 22,92,625 crores, marking a 7.82% Y-o-Y growth.
Total Deposits (Global): Increased to ₹ 13,09,750 crores, up 7.22% Y-o-Y.
Domestic Deposits: Climbed to ₹ 12,71,751 crores, a 6.05% increase from the previous year.
Domestic CASA Deposits: Improved by 3.94% Y-o-Y, reaching ₹ 4,26,242 crores.

2. Strong Advances Growth

Global Gross Advances: Rose to ₹ 9,82,875 crores, an 8.62% increase Y-o-Y.
Domestic Advances: Stood at ₹ 9,45,957 crores, reflecting an 8.28% Y-o-Y growth.
Domestic RAM Advances: Grew to ₹ 5,34,315 crores, registering a 10.63% increase.
Domestic Retail Advances: Surpassed ₹ 2,16,777 crores, recording a remarkable 22.14% Y-o-Y growth.

Quarterly Growth Performance (Q-o-Q)

Comparing the bank’s financial performance between December 2024 and March 2025:

Total Business (Global): Up by 5.86%.
Total Deposits (Global): Increased by 7.66%.
Domestic Advances: Rose by 3.62%.
Domestic Retail Advances: Saw an impressive 7.42% quarterly growth.

Union Bank of India Q3 FY25 Results: NII surge 0.79% YoY to Rs 9240 crore, Net Profit surges to 28.24% YoY

Aditya Bhagchandani — Mon, 27 Jan 2025 15:39:49 +0000

Union Bank of India reported a strong financial performance for the third quarter of FY25, with its net profit surging by 28.24% year-on-year (YoY) to ₹3,590 crore compared to ₹2,799 crore in Q3 FY24. The robust growth was driven by higher net interest income (NII) and improved asset quality.

The bank’s NII stood at ₹9,240 crore for Q3 FY25, reflecting a marginal growth of 0.79% from ₹9,168 crore in the same period last year. Non-interest income also witnessed significant growth, rising by 17.02% YoY to ₹4,417 crore, up from ₹3,774 crore in Q3 FY24.

Asset Quality Improvements

Union Bank continued its efforts to enhance asset quality. Gross Non-Performing Assets (GNPA) decreased to ₹36,554 crore in Q3 FY25 from ₹43,262 crore in Q3 FY24, marking a decline of 15.51%. Similarly, Net NPA dropped by 19.07% YoY to ₹7,568 crore from ₹9,351 crore in the previous year. GNPA as a percentage of total advances improved to 3.85%, while Net NPA stood at 0.82%, reflecting a significant improvement in the bank’s credit quality.

Operational Highlights

The bank’s global advances grew by 5.94% YoY to ₹9,49,164 crore, while deposits increased by 3.76% to ₹12,16,562 crore.
Operating profit rose by 2.94% YoY to ₹7,492 crore, compared to ₹7,278 crore in Q3 FY24.
Return on Assets (ROA) improved by 23 basis points (bps) YoY to 1.30%, while Return on Equity (ROE) increased by 50 bps to 17.75%.

Capital Adequacy

Union Bank’s Capital Adequacy Ratio (CRAR) improved to 16.72% as of December 31, 2024, up from 15.03% in the same period last year. The CET1 ratio also rose to 13.59%, reflecting the bank’s strong capital position.

The results showcase Union Bank’s steady growth trajectory, backed by higher earnings, improved operational metrics, and a sharp focus on asset quality.

Union Bank of India shares fall 6% after weakest Q3 business update among lenders

Aditya Bhagchandani — Mon, 06 Jan 2025 04:06:11 +0000

Union Bank of India’s shares dropped by as much as 6% on Monday, January 6, to ₹116.48 after the bank released its business update for Q3 FY2024-25. The state-run lender reported lackluster growth in key metrics, marking one of the weakest performances among its peers.

Key Highlights from Q3 FY25 Business Update:

Total Business (Global): Increased 4.7% YoY to ₹21.65 lakh crore but declined 0.24% sequentially.
Total Deposits (Global): Grew 3.76% YoY to ₹12.16 lakh crore but fell 2.04% QoQ.
Domestic Deposits: Reported a 2.45% YoY growth to ₹11.82 lakh crore but dropped 2.36% QoQ.
Global Gross Advances: Rose 5.93% YoY and 2.18% QoQ to ₹9.49 lakh crore.
Domestic Advances: Registered a 5.33% YoY increase to ₹9.13 lakh crore, up 2.06% QoQ.
Domestic CASA Deposits: Declined 0.44% YoY and 0.23% QoQ to ₹3.95 lakh crore.

Market Reaction:

Investors responded negatively to the subdued growth figures, particularly in deposits and CASA (Current Account Savings Account) balances, which are critical indicators of a bank’s liquidity and operational efficiency. Union Bank’s sequential decline in deposits and a slower pace of growth in advances compared to its peers have raised concerns over its performance.

The stock is currently trading at ₹116.48, marking a 6% decline from the previous close.

Union Bank of India Q3 Business Update: Total Deposits grows 3.76% YoY to Rs 12,16,562 crore

Aman Shukla — Sat, 04 Jan 2025 09:19:41 +0000

Union Bank of India has posted significant growth in its key financial metrics, demonstrating a positive trajectory in the last quarter of 2024. The bank’s total advances crossed ₹9,49,070 Crore, reflecting a robust year-on-year (YoY) growth of 5.93% as of 31st December 2024.

Here are the key highlights of the bank’s performance:

Total Business (Global)
The total business of Union Bank of India (global) stood at ₹21,65,632 Crore, witnessing a modest quarter-on-quarter (Q-o-Q) decline of 0.24%, but registering a 4.70% increase on a YoY basis.

Total Deposits (Global)
The total global deposits of UBI were recorded at ₹12,16,562 Crore as of December 31, 2024. While there was a slight decrease of 2.04% Q-o-Q, the bank still achieved a 3.76% growth YoY.

Domestic Deposits
The domestic deposits, which amounted to ₹11,82,623 Crore, saw a decline of 2.36% Q-o-Q. However, it still showed a positive 2.45% growth YoY.

CASA Deposits
The domestic Current Account Savings Account (CASA) deposits stood at ₹3,95,364 Crore, showing a slight decline of 0.44% YoY and a small decrease of 0.23% on a Q-o-Q basis.

Gross Advances (Global)
The global gross advances of Union Bank of India stood at ₹9,49,070 Crore, reflecting a solid increase of 5.93% YoY and a growth of 2.18% compared to the previous quarter.

Domestic Advances
The domestic advances totaled ₹9,12,842 Crore, a growth of 5.33% YoY, with a 2.06% increase Q-o-Q.

Domestic RAM Advances
The bank’s domestic RAM (Retail, Agriculture, and MSME) advances grew by 6.10% YoY, reaching ₹5,17,524 Crore. However, the growth was slightly lower than the previous quarter, with a decline of 1.45%.

Domestic Retail Advances
Union Bank of India’s domestic retail advances saw remarkable growth, crossing ₹2,01,801 Crore. This was a significant 16.35% YoY increase, with a 4.90% growth compared to the last quarter.

Union Bank of India: Stock down 34.2% from 52-week high, up 7.7% from 52-week low

Aman Shukla — Sun, 17 Nov 2024 09:50:06 +0000

Union Bank of India has experienced notable fluctuations in the stock market in the past year. On November 14, 2024, the stock closed at ₹113.60, showing a decline of 34.2% from its 52-week high of ₹172.50. However, it is still trading higher by 7.7% compared to its 52-week low of ₹105.50.

Key Stock Details:

Closing Price (Nov 14): ₹113.60
52-Week High: ₹172.50
Correction from High: -34.2%
52-Week Low: ₹105.50
Increase from Low: 7.7%

Recent Performance:

On November 14, Union Bank of India opened at ₹115.66 and reached a high of ₹117.64 during the session, while it dipped to a low of ₹113.25 before closing at ₹113.60.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to perform their own research or consult with their financial advisors before making any investment decisions.

Stock to watch today: Union Bank of India reports strong 34.43% YoY rise in net profit for Q2 FY25

Aditya Bhagchandani — Tue, 22 Oct 2024 03:09:10 +0000

Union Bank of India has released its financial results for Q2 FY25, demonstrating robust growth in profitability despite a slight decline in Net Interest Income (NII).

Net Interest Income (NII) for Q2 FY25 was ₹9,047 crore, down 0.87% YoY from ₹9,126 crore in Q2 FY24. This decline was mainly due to a 14.23% increase in interest expenses, which rose to ₹17,661 crore from ₹15,461 crore YoY.
Despite the slight dip in NII, net profit surged by 34.43% YoY to ₹4,720 crore, up from ₹3,511 crore in Q2 FY24. The bank effectively managed its provisions, which dropped by 8.52% YoY to ₹3,393 crore.

Other key highlights:

Interest Income: ₹26,708 crore, up 8.63% YoY from ₹24,587 crore in Q2 FY24.
Non-Interest Income: ₹5,328 crore, up 44.19% YoY from ₹3,695 crore in Q2 FY24.
Operating Profit: ₹8,113 crore, an increase of 12.35% YoY from ₹7,221 crore in Q2 FY24.
Net Interest Margin (NIM): Declined by 28 basis points YoY to 2.90%, down from 3.18% in Q2 FY24.

Union Bank of India’s strong net profit growth reflects its ability to maintain operational efficiency and manage provisions effectively, positioning it for future success despite the challenges in NII.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

Union Bank’s sees 9.36% YoY growth to ₹21.70 trillion of total global busines in Q2 FY24

Aditya Bhagchandani — Sat, 05 Oct 2024 12:15:51 +0000

Union Bank of India has reported strong growth in its Q2 update for the financial year 2024. The bank’s total business crossed ₹21.70 trillion as of September 30, 2024, marking a 9.36% year-on-year (YoY) growth.

Key Financial Highlights:

Total Business (Global): The bank’s total global business grew to ₹21.70 trillion, a 9.36% increase YoY, and a quarter-on-quarter (QoQ) growth of 1.61%.
Total Deposits (Global): Total deposits reached ₹12.42 trillion, up by 9.17% YoY. The domestic deposits stood at ₹12.11 trillion, recording an 8.12% YoY growth.
CASA Deposits (Domestic): Domestic Current Account Savings Account (CASA) deposits stood at ₹3.96 trillion, showing a slight dip of 0.81% QoQ but a YoY increase of 2.06%.
Total Advances (Global): The global gross advances increased to ₹9.28 trillion, growing by 9.63% YoY. The domestic advances grew to ₹8.94 trillion, an 8.88% rise YoY.
RAM Advances (Domestic): The bank’s domestic Retail, Agriculture, and MSME (RAM) advances crossed ₹5.25 trillion, growing by 12.30% YoY and 3.33% QoQ.

These provisional figures are being released ahead of the formal announcement of the financial results for the quarter and half-year ending September 30, 2024. The results are subject to review by the Statutory Central Auditors and other necessary approvals.

Stocks To Watch Today: Hindalco, Zee Entertainment, Union Bank of India, Swan Energy, Devyani International

Markets Desk — Tue, 20 Feb 2024 23:32:24 +0000

Markets in the US ended largely lower on the first trading session of the week as markets were shut on Monday. The Nasdaq ended lower by 1%, while Dow Jones fell 66 points in trade. Back home, after remaining in the red for most of the session, both Sensex and Nifty staged a sharp late recovery and Nifty ended after hitting a fresh record high of 22,215.

Top stocks to watch today are Hindalco, Zee Entertainment, Union Bank of India, Swan Energy, Devyani International.

Hindalco: Shares of Hindalco will be in focus today after its US subsidiary Novelis filed for an initial public offering (IPO) with the Securities and Exchange Commission. The shares are expected to be offered by Novelis’ sole shareholder AV Minerals (Netherlands), a wholly-owned subsidiary of Hindalco.

Zee Entertainment: Shares of Zee Entertainment will be in focus today after the company clarified that there are no talks with sony to revive the $10 billion merger.

Union Bank of India: Union Bank of India has approved its qualified institutional placement (QIP) on Tuesday to raise up to Rs 3,000 crore. The floor price for the QIP is set at Rs 142.78 per share, according to the filing with the exchanges.

Swan Energy: Shares of Swan Energy will be in focus today as the company has said that the board has approved the launch of qualified institutions placement (QIP) on February 20. The floor price has been fixed at Rs 703.29 per share.

Devyani International: Devyani International shares will be in focus as Yum Restaurant India is expected to offload a 4.4% stake at Rs 153.5 per share via block deal today, reported CNBC-TV18 quoting sources. The total size of the block deal is nearly Rs 815 crore.

Union Bank of India and IREDA inks MoU to boost renewable energy projects

United News of India (UNI) — Tue, 05 Sep 2023 16:22:06 +0000

Hyderabad/ Mumbai, Sep 5 : Union Bank of India (UBI) and Indian Renewable Energy Development Agency Limited (IREDA) on Tuesday announced the signing of a Memorandum of Understanding (MoU) to foster collaboration and cooperation in various areas of renewable energy and financial assistance.

This MoU represents a significant step forward in advancing the goals of sustainable development and renewable energy adoption in India, the bank said in a release.

The MoU was held in Mumbai in the presence of A Manimekhalai, Managing Director & CEO, Union Bank of India & Pradip Kumar Das, CMD, IREDA.

The MoU comes into effect immediately upon signing and is initially valid for a period of five years. It may be extended further upon mutual consent of the parties involved, highlighting their long-term commitment to fostering the growth of renewable energy projects in India.

Under the MoU, both UBI and IREDA have pledged to collaborate on various fronts, including co-originating renewable energy projects, loan syndication and underwriting, management of Third-Party Resources (TRA) for IREDA borrowers, and the potential investment in IREDA Bonds.

Specifically, the collaboration encompasses the co-origination of projects in the realm of renewable energy, encompassing Small Hydro projects and Ethanol Projects.

Additionally, UBI and IREDA will work together to facilitate the syndication and underwriting of loans for renewable energy projects, promoting easier access to financial resources for the development of such projects.

The Bank will also play a crucial role in managing Third-Party Resources (TRA) for borrowers associated with IREDA, further enhancing the efficiency and effectiveness of project management.

Union Bank board approves Rs. 5,000 crore fundraising plan via QIP

Adesh Dixit — Mon, 21 Aug 2023 13:42:36 +0000

According to a regulatory filing on August 21, the board of Union Bank of India has approved the funding of up to Rs 5,000 crore through a qualified institutional placement (QIP) and has fixed a floor price of Rs 91.10 per share.

The choice was made by the committee of directors for capital fund raising at Union Bank, which convened earlier in the day.

According to the exchange filing, the committee “approved the opening of the issue today, i.e. August 21, 2023,” and “approved the floor Price of Rs 91.10 per equity share.”

The panel approved the issuance of equity shares through qualified institutional placement for a sum “not exceeding Rs 5,000 crore, subject to the necessary regulatory/statutory approvals,” the state-run lender stated.

The committee will reconvene on August 24 to “consider and approve the issue price, including a discount, if any thereto” for the equity shares to be allocated to eligible institutional buyers, in accordance with the issue, according to another exchange filing by Union Bank.

The statement comes one month after Union Bank revealed that its standalone net profit for the first quarter of the current fiscal year increased by 107 percent year over year to Rs 3,236.44 crore. The lender’s net interest income rose 16.59 percent year over year to Rs 8,840 crore.

The lender also reported an improvement in asset quality, with a 288-bps reduction in the gross non-performing asset (NPA) ratio and a 173-bps decline in the net NPA ratio as compared to the same time last year.

On the BSE, Union Bank’s stock price at the end of the trading day on August 21 was Rs 91.80, 2.81 percent less than it had been at the previous day’s closing.

CBI recovers valuable items worth Rs 12.50 crore in Bank Fraud Case

United News of India (UNI) — Thu, 28 Jul 2022 19:36:23 +0000

New Delhi, July 28: The Central Bureau of Investigation (CBI) recovered paintings, watches, gold and diamond jewelry valued at around Rs 12.50 crores during searches in an on-going investigation of a case related to alleged loss of Rs 34,615 crore to consortium of 17 banks, the probe agency said on Thursday.

The agency conducted searches in connection with the case. Two paintings worth Rs 5.50 crore, two watches of Rs 5 crore and Gold and Diamond Jewellery including Bangles & Necklace Rs 2 crore were recovered. It was also alleged that the Promoters had acquired expensive items. Using the diverted funds, the CBI statement stated.

During investigation, the then CMD and then Director. Both of private companies based at Mumbai were arrested. And both are presently in CBI custody.

A case was registered on June 20 on the basis of the complaint received from Union Bank of India, Industrial Finance Branch, Mumbai. Against private (Borrower) company based at Mumbai, its then CMD, then Director. And others including a private person and private companies on the allegations that the accused cheated a consortium of 17 banks of Rs 34,615 crore. By siphoning off loans availed from the said banks and falsifying the books of said private (Borrower) company. And creating Shell Companies/false entities. Which had come to be known as “Bandra Book Entities”, it stated.

It was alleged that the said private company and its promoters had created a number of shell companies and fictitious entities (the Bandra Book entities). And siphoned off huge funds by disbursing funds to such fictitious entities. It was further alleged that separate audits conducted by other private audit accounting organisations had identified multiple instances of diversion of funds. By the accused for personal benefits and falsification of books of accounts to camouflage. And conceal dubious transactions.
Earlier, searches were conducted at various locations in Mumbai at the premises of the accused. Which led to recovery of incriminating documents. Investigation is underway.

CEO of Union Bank of India: restructures loans worth Rs 13,000 crore, follows resolution framework by RBI

Aayushi Singh — Thu, 29 Jul 2021 15:15:15 +0000

On July 29, the Union Bank of India, which is the fourth-largest public sector bank in the country, had said that it had so far restructured the loans worth Rs 15,927 crore under the two resolution frameworks announced by the Reserve Bank of India.

Rajkiran Rai G, MD, and CEO of the Union Bank said that a large piece of the restructured accounts was from the retail segment. He added on saying that under the resolution framework 1.0, the lender had restructured accounts worth Rs 11,965 crores, out of which Rs 3,702 crore were from the personal loans segment, Rs 2,427 crore were from the micro, small and medium enterprises segment and Rs 5,836 crore were from the large corporates.

Till June 30, 2021, the total recast amount was Rs 3,962 crore under the resolution framework. The scheme would be open for three more months. In the second round of the recast, the personal loans accounted for Rs 2,855 crore, and from the MSME’s over Rs 954 crore came, the rest came from agriculture. Under the resolution framework, 2.0 announced on May 5, 2021, large corporates were not eligible for the recast.

Rajkiran Rai said that they have expected that retail and MSME would be put together, and restructuring worth Rs 2,000 crore might occur in the second quarter.

On August 6, 2020, the first resolution framework was issued and was applied to all the categories of borrowers affected by the COVID-related stress.

Slippages worth Rs 7,049 crore were reported by Union Bank in Q1FY22, out of which 45 per cent was from the MSME segment. 15 per cent of the total slippages were from Retail which was worth Rs 1,078 crores. Mr. Rai said that the stress was mainly due to COVID-19 as the EMI payments had been affected, and the stress in retail was already covered in the June quarter and there was not much in the September quarter.

The CEO had mentioned that the bank was confident that stress would get lower with the aid of restructuring and the facilities extended under the emergency credit line guarantee scheme (ECLGS). In FY22, the Union Bank has expected recoveries and upgrades worth Rs 13,000 crore. The recoveries and upgrades in Q1 were over Rs 4,300 crore.

Union Budget 2021: Announcement and impact on sectors

Sanah Shah — Mon, 01 Feb 2021 09:32:17 +0000

The Union Budget 2021 was read by Finance Minister Nirmala Sitharaman at 11 AM this morning, Friday 1st February 2021. The details below contain important and relevant announcements made and their impact on the economy –

Announcement – Voluntary vehicle scrappage policy

To phase out old and unfit vehicles. This will encourage fuel-efficient and environment-friendly vehicles which will reduce vehicular population and oil import bills. Vehicle will undergo fitness test and if a vehicle fails it thrice, it will be subjected to mandatory scrapping. Passenger vehicle older than 20 years and commercial vehicles older than 15 years are allowed to be scrapped.

Impact – Positive for Auto sector and for Rupee. May generate more employment and cleaner cars.

Announcement – PM Atmanirbhar Swasth Bharat

To strengthen primary, secondary and tertiary health care infrastructure, the government is handing out Rs 64,180 crore over 6 years. This also aims to motivate the healthcare industry.

Impact – Favorable for the entire healthcare industry

Announcement – The Urban Swachh Bharat scheme

This scheme will be implemented with an outlay of over Rs 1.4 lakh crore.

Impact – Positive for sanitary ware companies

Announcement: Introduce a bill to setup a developmental financial institution

This development financing institution will play a major role as an enabler for financing infrastructure in the country. The institution will be provided with Rs 20,000 crore. There is also indications for switching to more affordable housing which will up real estate companies in the market.

Impact – Positive for infrastructure and Real Estate Companies

Announcement – FY22 capital expenditure target raised to Rs. 5.54 as against Rs. 4.39 lakh crore

Impact – Advantageous for Capital Goods (L&T, ABB, Siemens) and Infrastructure companies.

Announcement – 100 more districts to be added in city gas expansion and Independent gas transportation system to be set up

Impact – Positive for Gas companies like GAIL, IGL, MGL and Gujarat Gas

Announcement – FY22 PSU Bank Recap of Rs. 22,000 crore

Impact – Positive for select PSU Banks

Announcement – Asset reconstruction and Management Company to manage stressed asset.

Impact – Positive for Banking sector

Agriculture –

Announcement – Paid Rs 75,100 crore for wheat MSP and 43.46 lakh farmers benefited

In 2020-21 estimate of Rs 1,72,752 crore is to be paid in comparison to Rs 2019-20 Rs 41,931 crore and presently 1.54 crore farmers have benefitted.

Agriculture credit to farmers – Rs 16.5 lakh crore for FY22

Impact – Beneficial for agriculture and accompanying sectors. Companies such as Coromandal, Godrej Agrovet, UPL, M&M, Escorts

Announcement – FM announces Rs 1,000 crore to solar energy corporation and Rs 1,500 to renewable energy development agency.

Impact – Positive for silver demand outlook

Announcement – Schemes to assist Discoms will be launched.

The scheme will commence with an outlay of Rs 3 lakh crore. The framework will allow consumers to choose their supplier.

Impact – Immense competition

Announcement – The Fiscal deficit for FY21 is expected to be at 9.5% and FY22 is expected to be at 6.8% of GDP. Target to return to fiscal consolidation path and return to 4.5% by FY26.

Impact – Higher than what the markets were expecting. Typically, negative for banks but considering the economic scenario it would be taken in stride.

Announcement – Deduction on payment of interest for affordable housing extended by 1 year

Impact – It will stimulate demand and is positive for Real estate companies

Announcement – Gold and silver import duty to be rationalized

Impact – Negative for gold prices in the immediate short term, but very positive in long term for gold demand outlook and will also control illegal trade in gold. It will boost the Gems and Jewellary industry.

Banks mark RComm account as fraud, ‘unjustified and unwarranted’, says Reliance Group

Devanshu Singla — Wed, 30 Dec 2020 14:30:06 +0000

On 29 December, three state-run lenders, State Bank of India (SBI), Union Bank of India (UBI) and Indian Overseas Bank (IOB) classified accounts of the Anil Ambani owned Reliance Communication Ltd (RCom) and its two units Reliance Telecom Ltd (RTel) and Reliance Infratel Ltd (RInfra) as fraudulent.

Additionally, the SBI and the UBI have also marked Reliance Telecom Ltd account as fraud.

The Delhi High Court has also suggested that the union government is free to investigate or file any complaint proceedings against RCom and RTel. The resolution professional for RCom has accepted claims worth Rs 49,224 crore from 53 creditors, including banks, non-banking finance companies (NBFCs) and mutual funds (MFs), the Economic Times reported.

Today, Reliance Group in a statement has said that certain banks labelling accounts of the now defunct telecom firm – Reliance Communications (Rcom) – and its units as fraud was “unjustified” and “unwarranted”.

It also denied the reports on social media that RCom and its units owe lenders Rs 86,188 crore, saying they owe around Rs 26,000 crore to Indian banks and financial institutions as on the date of filing before the dedicated bankruptcy court.

On Wednesday, Reliance Group in a statement said, “The alleged ‘fraud’ classification by certain banks is entirely unjustified and unwarranted, and the Delhi High Court by an interim order has directed the same to be kept in abeyance for the time being, and the matter is now sub judice.”