Union Bank of India defies correction in PSU lenders, stock rallies 3%

Shares of Union Bank of India rallied nearly 3 percent intraday on September 20, even as the benchmark indices traded deep in red and other PSU bank stocks fell.

At 12:52pm, the Union Bank of India stock was trading 3.08 percent higher at Rs 101.90 on the NSE.

Earlier this week, the government extended the term of Nitesh Ranjan as executive director of the bank by another two years. Ranjan’s current term ends on March 9, 2024, according to a filing with the BSE on September 18.

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Brokerage views

Brokerage firm Motilal Oswal is bullish on Union Bank of India, and has assigned a ‘buy’ rating to the stock with a target price of Rs 110 in its July 22 research report.

Shareholding pattern of Union Bank of India

Union Bank of India has a market capitalisation of Rs 73,309 crore. Promoters i.e. the President of India holds 83.49 percent stake in the public sector bank, while DIIs and the public own 7.88 percent and 7.16 percent in the bank. FIIs own the remaining 1.46 percent stake in the bank.

Stock performance

The Union Bank of India stock has given a return of 55.91 percent over the last six months. The benchmark Nifty Bank index has given a return of 16.81 percent over the same duration.

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