Union Bank share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about Union Bank share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned Union Bank share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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Union Bank: Company Profile
Union Bank of India was established on 11th November 1919 with its headquarters in Mumbai. It was promoted by Seth Sitaram Poddar. The Head Office building of the Bank in Mumbai was inaugurated by Mahatma Gandhi, the Father of the nation in the year 1921, and he said on the occasion:
“We should have the ability to carry on a big bank, to manage efficiently crores of rupees in the course of our national activities. Though we have not many banks amongst us, it does not follow that we are not capable of efficiently managing crores and tens of crores of rupees.”
Union Bank of India is one of the leading public sector banks in the country. The Bank is a listed entity and the Government of India holds 83.50 percent of the Bank’s total share capital. The Bank, having its headquarters in Mumbai (India), was registered on November 11, 1919, as a limited company. Recently, Andhra Bank and Corporation Bank were amalgamated into Union Bank of India with effect from 01.04.2020. Today, it has a network of 9100+ domestic branches, 11400+ ATMs, 8216 BC Points serving over 120 million customers with 76000+ employees.
The Bank’s total business as of 30th September 2021 stood at Rs.15,48,605 crore, comprising Rs. 9,14,022 crore of deposits and Rs. 6,34,583 crore of advances as of 30th September 2021. The Bank also has 3 branches overseas in Hong Kong, Dubai International Financial Centre (UAE) & Sydney (Australia); 1 representative office in Abu Dhabi (UAE); 1 banking subsidiary in London (UK); 1 banking joint venture in Malaysia; 4 para-banking subsidiaries (domestic); 3 joint ventures(including 2 in the life insurance business) and 1 associate – Chaitanya Godavari Gramin Bank. Union Bank of India is the first large public sector bank in the country to have implemented a 100% core banking solution.
Union Bank Share Price Target 2022
The outlook for the banking sector is mixed with opportunities and uncertainties. The Covid-19 continues to be a challenge. However, the country is vaccinating fast, and it is expected that we will exit the current wave sooner than later. Once the recovery strengthens, the banking sector is expected to benefit by expanding its business through increased credit deployment. Even during the last financial year, credit growth picked up in sectors like agriculture, medium enterprises, retail sectors, showing much better growth than the overall credit growth.
The banks have also improved their financial position aided by capital raising from the market and retention of profits. Therefore, going forward, a faster than expected revival in economic activities may improve the overall performance of the banking sector. The COVID-19 pandemic has also fast-tracked the digital transformation of the payments ecosystem in India. Digital transactions recovered from their lows in the months of the lockdown and gained traction over the rest of the year with a growing preference for contactless transactions and tailored financial offerings to adapt to the needs of end-users.
The banks are expected to continue their efforts in this area so as to come out with more and more innovative solutions. Going forward, the continued policy support by the RBI and the government is an emphasis on an orderly growth of the banking system in the country. By considering all these factors, Union Bank share price target for 2022 is Rs 82.
|Union Bank share price target 2022|
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Union Bank Share Price Target 2023
The banking sector continued to face the challenges of sluggishness in credit demand and stress on asset books due to Covid led slowdown in the economy. Credit off-take during 2020-21 was muted with nonfood credit growth decelerating to 5.59 percent as of 26th March 2021 from 6.17 percent as of 27th March 2020. The slowdown in Scheduled commercial Banks’ (SCBs’) credit growth during 2020-21 has been broad-based across all major sectors, except agriculture. Credit growth to industry decelerated marginally to 0.4% (0.7% a year ago) mainly due to credit to large industries, which contracted by 0.8% in March 2021 (as compared with a growth of 0.6% a year ago).
This is primarily on account of large industries obtaining financial resources from nonbank sources, while credit to medium industries registered a robust growth of 28.8% in March 2021 (as compared to a contraction of 0.7% a year ago). The slowdown in the growth of personal loans continued, as it decelerated to 10.2 percent in March 2021 from 15.0 percent a year ago. However, vehicle loans and loans against gold jewelry continued to perform well during the month, registering accelerated growth.
Aggregate deposits of SCBs registered strong growth during the financial year FY21, in spite of considerable moderation in interest rates, reflecting risk-averse behavior of depositors and lack of lucrative alternative investment avenues. The deposits grew by 11.39 percent as of 26th March 2021 compared to 7.90 percent growth in the corresponding last year (i.e. 26th March 2020). By keeping in mind about all these factors and research, Union Bank share price target for 2023 is Rs 99.
|Union Bank share price target 2023|
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Union Bank Share Price Target 2024
Bank’s retail lending portfolio grew by 10.49% in the FY 2020-21. The retail loan portfolio grew from Rs.1,13,521 crore as on March 31, 2020 to Rs.1,25,427 crore as on March 31, 2021. Within retail, the personal loan segment has made a significant jump in FY 2020-21 with a growth rate of 58.69%. Home loans, having the highest share in retail, grew by 6.06%. Vehicle loan has grown by 27.49% while mortgage loans also improved by 1.12% during the year. The Bank has taken innovative measures to attract new business. Accordingly, it has introduced retail loan products such as home, vehicle, and education on psbloanin59minutes portal.
Further, to strengthen the business mobilization, Bank has launched product-specific campaigns along with expansion in tie-ups/partnerships. Bank has been leveraging the technology by data analytics extensively and garnered business to the extent of Rs.192 crore from potential leads. As a part of the digitization of retail products, the bank has launched digitalized personal (PAPL) loan. Bank strives to maximize processing efficiency through centralized processing centers (ULP) and complete digitization of all retail products by FY 2022.
Agriculture lending has always been the priority area for Union bank. Agriculture advances constituted 19% of the gross advances of the bank as of 31.03.2021. Against the statutory target of 18% under Agriculture Priority as of March 31, 2021, Bank’s performance is 18.69%, and also the bank able to sell the surplus of Rs.3500 Crore under Agriculture in e KUBER portal of RBI. The bank registered a YOY growth of 11.89 in Agriculture for FY 2020-21 with an outstanding of Rs.120124 Crore as of 31.03.2021.
Outstanding credit to small and marginal farmers as of March 31, 2021, stood at Rs.76070 crore which constituted 11.74 percent of ANBC against the benchmark of 8.0 percent of ANBC. During FY 2020-21, 2.51 lakh fresh Kisan Credit Cards were issued. Union Bank share price target for 2024 is Rs 127.
|Union bank share price target 2024|
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Union Bank Share Price Target 2025
Union Bank has been focusing on delivering credit to the Micro, Small & Medium Enterprises (MSME) sector. Lending to MSMEs stood at Rs.1,22,274 crore as of March 31, 2021, registering an annual growth of 3.24% percent. Within MSME, MSE lending stood at Rs. 94,484 crore, as of March 31, 2021, registering a growth of 3.29% percent.
During the FY 2020-2021, 870141 new loans have been sanctioned under Pradhan Mantri MUDRAYojana (PMMY) amounting to Rs 8423.76 Crore. Outstanding position under PMMY as of 31.03.2021 is 22.06 lakh accounts with an amount of Rs 18832.18 crore. Union Bank has also been one of the best performing banks on psbloansin59 minutes. com portal. As of 31.03.2021, 33167 MSMEs have been given In-Principle sanctions through this portal. Of these, the final sanction was given to 18081 proposals amounting to Rs 5380.65 Crore. Union Bank of India is the first bank to extend up to 5 crore finance to MSMEs under the portal.
The corporate advances of Union Bank stood at Rs. 2,85,859 crore. Seven Industrial Financial Branches (IFBs) and Thirty Seven Mid Corporate Branches across the country are catering to the needs of corporate clientele. The Bank has made judicious disbursements to investment grade projects of large corporate, thus participating in the growth opportunities in the Indian economy and its global linkages. By considering all these factors, Union bank share price target for 2025 is Rs 151.
|Union bank share price target 2025|
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Union Bank Share Price Target 2030
Overseas business of the Bank stood at Rs.18,190.00 Crore as of March 31, 2021, compared to Rs.24,345.00 Crore as of March 31, 2020. Your Bank has three overseas branches in Hong Kong, DIFC Dubai, and Sydney (Australia). Union Bank also operates in the United Kingdom through its wholly-owned subsidiary, Union Bank of India (UK) Ltd. Union Bank also operates in Kuala Lumpur (Malaysia) through its Joint Venture – India International Bank Malaysia Berhad, which is a Joint Venture with Bank of Baroda (40% shareholding) and Indian Overseas Bank (35% shareholding). Union Bank shareholding is 25%.
Due to the impact of the Covid-19 pandemic across various geographies, the total business of the foreign branches during the FY 2020-21 has contracted by 18.30%. However, the operating profit has increased by 9.60% during FY 2020-21. Since the merger of e-Corporation bank and e-Andhra Bank with Union Bank of India on 1st April 2020, banks treasury portfolio and human capital have risen in a commendable manner. Because of the synergy which has been strategically and efficiently managed by leaders of the bank, Treasury was able to achieve better profitability for the first years of merged operation.
Being a large PSU bank post amalgamation, Bank is getting wide access to various institutional/Corporate customers. Further, Treasury’s active participation in the Bond Market under the TLTRO window has enabled us to interact with more corporate/FIs. Accordingly, Treasury will be strengthening the Non-SLR desk for participation in the Bonds/CP/CD markets and more particularly for initiating Bond Syndications.
The team will be actively supporting Bank’s Loan Syndication Desk proposed under the Large Corporate Vertical to offer a complete structured lending product mix. Bank will also increase its presence as IPA, thus aiding in branding of the bank along with additional revenue sources. By considering all the above-mentioned factors, Union bank share price target for 2030 is Rs 330.
|Union bank share price target 2030|
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Union Bank Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||Unio Bank share Price Target|
|Union Bank share price target 2022||Rs 82|
|Union Bank share price target 2023||Rs 99|
|Union Bank share price target 2024||Rs 127|
|Union Bank share price target 2025||Rs 151|
|Union Bank share price target 2030||Rs 330|
Frequently Asked Questions
What is the target of Union Bank?
The target of union bank for 2022 is Rs 82, the target of Union bank for 2023 is Rs 99, the target for Union bank for 2024 is Rs 127, the target for Union bank for 2025 is Rs 151, and the target of Union bank for 2030 is Rs 330.
Is it good to buy Union bank?
No, there are a lot of other banking stocks which are better than Union bank in terms of financials and fundamentals. Invest your hard-earned money in some other banking stocks which are better than the Union bank. Union bank had a low ROE of -5.55% over the past 3 years. The bank also has a high NPA, the average NPA for the last 3 years stands at 5.65%.
Which bank share is best for future?
IDFC first bank and Federal bank are the best penny bank stocks for the future. Both IDFC first bank and Federal bank have the potential to become multi-baggers in the long term. Both banks are very strong in terms of financials, fundamentals, and the main thing leadership.