
Union Bank of India achieved a milestone by surpassing ₹1 lakh crore in overall market capitalization on Tuesday, becoming the fourth public sector bank to do so. The distinguished list already includes State Bank of India, Bank of Baroda, and Punjab National Bank, with SBI leading with a market capitalization of ₹5.7 lakh crore.
PSU Banks with Market Cap of Over ₹1 Lakh Crore
Lender | Market Cap (₹ lakh crore) |
State Bank of India | 5.69 |
Bank of Baroda | 1.20 |
Punjab National Bank | 1.07 |
Union Bank of India | 1.03 |
PNB accomplished this milestone in December of the previous year, while Bank of Baroda achieved it in October 2019. The PSU Bank index’s collective market value has risen from ₹10.6 lakh crore to ₹13.5 lakh crore in the past year, now that four banks have crossed the ₹1 lakh crore market capitalization threshold.
During a recent analyst meet, Union Bank’s management reaffirmed its guidance for the financial year 2024. The management anticipates a credit growth between 10% to 12% for FY 2024, with gross and net NPAs expected to remain below 5% and 1%, respectively.
Analysts highlight the advantageous position of public sector banks in managing their Net Interest Margins, attributed to their excess liquidity and lower credit-deposit and liquidity coverage ratios. Since 2021, PSU Banks have consistently outperformed their private counterparts.
Over the last three years, while the Nifty Bank witnessed a 12% to 20% rally, the PSU Bank index experienced a more substantial gain ranging from 30% to 70%.
Union Bank of India’s shares have demonstrated an impressive rally of 66% in the past six months, surpassing both the Nifty Bank index and the Nifty PSU Bank Index. In the same period, the Nifty PSU Bank Index rose by 35%, while the benchmark Nifty50 and Nifty Bank Index generated returns of 13% and 7%, respectively.
Nearly Congratulations to all STAFF for achieving this wonderful Achievement