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Union Bank shares up for 3rd day, hit fresh 52-week high. Here's why

Union Bank shares up for 3rd day, hit fresh 52-week high. Here's why

Union Bank hit a fresh 52-week high of Rs 83.70 on BSE. With this, the scrip has rallied 150 per cent from its 52-week low Rs 33.55 hit in May this year

Union Bank saw 13.70 lakh shares changing hands compared with a two week average of 27.27 lakh shares. The counter had sell orders of 11,92,290 shares against buy orders of 2,55,551 shares Union Bank saw 13.70 lakh shares changing hands compared with a two week average of 27.27 lakh shares. The counter had sell orders of 11,92,290 shares against buy orders of 2,55,551 shares

Shares of Union Bank on Wednesday climbed for the third straight day to hit a fresh 52-week high of Rs 83.70 on BSE after the lender raised Rs 2,200 crore through allotment of unsecured Tier-2 bonds. With this, the scrip has rallied 150 per cent from its 52-week low Rs 33.55 hit in May this year.

A total of 13.70 lakh shares changed hands on the counter compared with a two week average of 27.27 lakh shares. The counter had sell orders of 11,92,290 shares against buy orders of 2,55,551 shares.

In a filing to BSE, the bank on Tuesday said" "We wish to inform you that the bank has allotted unsecured, subordinated, non-convertible, taxable, fully paid-up basel III compliant Tier- 2 bonds in the nature of debentures eligible for inclusion in Tier 2 Capital (“Bonds”) in two tranches of Rs 1500 crore and Rs.700 crore, to Rs 2,200 crore on November 29," it said.

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Recently, the bank appointed Srinivasan Varadarajan its Non-Executive Chairman and part-time Non-Official Director .

The bank management recently highlighted various initiatives undertaken by it to improve the underwriting standards, increased focus on speedy and timely resolution of stressed assets, better monitoring of the SMA book, and higher focus on recoveries.

The bank is aiming to pare down the Gorss NPA ratio to less than 9 per cent and net NPA ratio  to 2.9 per cent in FY23.

Slippages are seen moderating to less than 2 per cent with a credit cost of less than 1.7 per cent. 

Published on: Nov 30, 2022, 11:01 AM IST
Posted by: Priya Raghuvanshi, Nov 30, 2022, 10:57 AM IST