In a standout performance, Union Bank of India’s shares surged to a one-year high, witnessing a remarkable 6.72% jump, reaching Rs 145.25 in a special Saturday trade session. The spike follows the bank’s robust third-quarter results for the financial year 2023-24, where net profit soared by 59.91% to Rs 3,590 crore compared to Rs 2,245 crore in the same period last year.
During Q3 FY24, the gross non-performing asset (NPA) settled at 4.83%, contributing to the positive sentiment surrounding the bank’s stock. Interest earned in the December 2023 quarter amounted to Rs 25,363 crore, and provisions and contingencies stood at Rs 1,748 crore, a significant decrease from Rs 3,036 crore in the corresponding period the previous year.
Trading on the Bombay Stock Exchange (BSE) witnessed a robust turnover of Rs 30.99 crore, with approximately 21.98 lakh shares changing hands, surpassing the two-week average volume of 17.47 lakh shares. The market capitalization (m-cap) of Union Bank reached Rs 1,05,405.01 crore.
The stock demonstrated strength across various moving averages, trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day, and 200-day simple moving averages (SMAs). The 14-day relative strength index (RSI) settled at 76.79, indicating overbought conditions.
With a price-to-earnings (P/E) ratio of 8.57 and a price-to-book (P/B) value of 1.12, Union Bank of India showcased solid fundamentals. The one-year beta of 0.7 indicated low volatility.
Promoters retained a significant stake of 76.99% in the PSU bank as of December 2023. The positive market response aligned with a special full-fledged trading session declared on January 20, following the Maharashtra government’s decision to observe January 22 as a public holiday due to the consecration of the Ram temple in Ayodhya.