Saturday, November 6, 2021

Union Bank Q2 PAT up 183 % | Stock Outlook


Union Bank Q2 PAT up 183% at Rs1,511cr on lower provisions and sharply lower interest costs

Union Bank reported 3.40% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs21,622cr

Union Bank reported 3.40% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs21,622cr. The revenues were up 5.24% on a sequential basis compared to Rs20,545cr in the Jun-21 quarter.

While revenues from treasury were lower on a yoy basis, the revenues from retail banking and corporate banking were higher on yoy basis. While operating profits of treasury and retail banking contracted, the big boost to bottom line came from the corporate banking losses narrowing by nearly 87% on yoy basis.

Net profits for the Sep-21 quarter were higher by 182.97% on yoy basis at Rs1,511cr. On a sequential basis, the net profit was higher by 34.86% compared to the Jun-21 quarter profits of Rs1,120cr.

The provisions for doubtful assets were lower by 12.3% at Rs3,719cr. But the big boost came from interest cost in the quarter falling by 14% yoy to Rs9,882cr. Rs. Net margins at 6.99% in the Sep-21 quarter was higher than 2.55% in the Sep-20 yoy quarter and also better than 5.45% in Jun-21 sequential quarter.

Gross NPAs were lower by 207 bps at 12.64%. Although this is still high in absolute terms, it is substantially provided for. Operating margins improved by 541 points to 29.36% in Sep-21 quarter.

Stock Outlook

Stock now looks strong for long term . Stock can test 124 in 1 - 3 years. 40 is now good support zone. Follow buy on dips.

Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader, user and company that are mention on this website. We are not SEBI registered financial advisor or analyst.

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