Shares of Union Bank of India witnessed a notable 1.5% surge in early trade on January 8, following the bank’s impressive Q3 performance, marked by an 11.44% year-on-year (YoY) growth in advances. At 9:15 am, the stock was trading at Rs 125.12 on the NSE.
The public sector bank reported total business exceeding Rs 20.68 lakh crore in the December FY24 quarter, showcasing a robust growth of 10.67% YoY. Union Bank of India’s advances saw a remarkable 11.44% YoY increase, reaching Rs 8.96 lakh crore, while deposits surged by 10.09% to Rs 11.72 lakh crore during Q3FY24.
In the domestic market, the bank experienced an 8.54% YoY growth in deposits, totaling Rs 11.54 lakh crore. Simultaneously, domestic advances rose by 10.69%, reaching Rs 8.66 lakh crore, according to provisional figures.
Motilal Oswal, a brokerage firm, has expressed bullish sentiments on Union Bank of India, assigning a ‘buy’ rating to the stock with a target price of Rs 150 per share. The bank’s significant increase in advances and deposits underscores effective financial management, showcasing its ability to attract and deploy funds efficiently.
Union Bank of India’s robust Q3FY24 performance contributes significantly to the stability and growth of the banking sector in India. As of 10:32 am, the shares were trading at Rs 123.05, showing a slight dip of 0.89%.
