Union Bank of India jumps as bad loans drop in Q4

The bank announced Q4 results during trading hours today, 9 May 2013.

Meanwhile, the S&P BSE Sensex was up 23.67 points or 0.12% at 20,013.85.

The stock surged on high volumes. On BSE, 6.65 lakh shares were traded in the counter as against average daily volume of 1.71 lakh shares in the past one quarter.

The stock hit a high of Rs 255 and a low of Rs 237.15 so far during the day. The stock had hit a 52-week high of Rs 288 on 2 January 2013. The stock had hit a 52-week low of Rs 150.10 on 30 August 2012.

The stock had outperformed the market over the past one month till 8 May 2013, jumping 11.2% compared with the Sensex's 8.42% surge. The scrip had also outperformed the market in past one quarter, gaining 2.79% as against Sensex's 2.59% rise.

The large-cap state-run bank has equity capital of Rs 596.79 crore. Face value per share is Rs 10.

Union Bank of India's ratio of gross non-performing assets (NPAs) to gross advances decreased to 2.98% as on 31 March 2013, from 3.36% as on 31 December 2012 and 3.01% as on 31 March 2012.

Union Bank of India's net profit rose 2.09% to Rs 789.38 crore on 15.41% growth in total income to Rs 7500.59 crore in Q4 March 2013 over Q4 March 2012.

Union Bank of India's provisions and contingencies surged 26.75% to Rs 655.53 crore in Q4 March 2013 over Q4 March 2012. Provision coverage ratio stood at 65.21% as on 31 March 2013.

The bank's capital adequacy ratio (CAR) as per Basel II norms improved to 11.45% as on 31 March 2013, from 10.78% as on 31 December 2012 but declined from 11.85% as on 31 March 2012.

Union Bank of India's net profit rose 20.74% to Rs 2157.93 crore on 17.89% growth in total income to Rs 27676.73 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).

On consolidated basis, Union Bank of India's net profit rose 21.38% to Rs 2131.15 crore on 19.46% growth in total income to Rs 28036.57 crore in FY 2013 over FY 2012.

Union Bank of India's board of directors at a meeting held today, 9 May 2013, recommended dividend of Rs 8 per share for FY 2013.

The Government of India (GoI) holds 57.89% stake in Union Bank of India (as per the shareholding pattern as on 31 March 2013).

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