Union Bank of India Reports Positive Q2 FY25 Results, Stock Rating 'Hold' by MarketsMOJO

Union Bank of India, one of the leading public banks in India, has recently declared its financial results for the quarter ending September 2024. The stock call for the bank by MarketsMOJO is ‘Hold’.

According to the financials, Union Bank (I) has shown a positive performance in the quarter, with a score improvement from 4 to 7 in the last 3 months. This can be attributed to various factors such as a decrease in gross non-performing assets (NPA) by 4.36% and a consistent growth in interest earned, which has reached its highest at Rs 26,708.43 crore. The bank has also seen a significant increase in its profit after tax (PAT) at Rs 4,719.74 crore, which is a growth of 34.0% over the average PAT of the previous four quarters.

The bank’s earnings per share (EPS) have also shown a positive trend, reaching its highest at Rs 6.18 in the last five quarters. Additionally, the capital adequacy ratio (CAR) has also improved to 17.13%, indicating a strong capital base and risk management by the bank.

However, there are some areas that need improvement for Union Bank (I). The net interest income has decreased to its lowest at Rs 9,047.26 crore, indicating a decline in the bank’s core business income. The profit before tax (PBT) has also fallen by -6.7% over the average of the previous four quarters, and the non-operating income is 83.24% of the PBT, which may not be a sustainable business model.

Overall, Union Bank of India has shown a positive financial performance in the quarter ending September 2024, with some areas that need improvement. Investors are advised to hold their stocks in the bank, as recommended by MarketsMOJO.