Union Bank Short Term Buy Call

Union Bank Short Term Buy CallTechnical analyst Kunal Saraogi has maintained 'buy' rating on Union Bank Of India stock with a short term target that lies between Rs 350-360.

The analyst said that the stock can be purchased with a stop loss of Rs 320.

The stock of the company, on December 29, closed at Rs 333.35 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 426.80 and a low of Rs 238.55 on BSE.

Current EPS & P/E ratio stood at 40.23 and 8.49 respectively.

Nationalized Union Bank of India announced that it is making plans to lift up $200 million from the abroad market by the next two months via a bond issue.

Union Bank of India Managing Director M V Nair stated, "We are planning to raise another USD 170-200 million Medium Term Notes (bonds) in the next two month`s time through bonds. The bank has already held a road show in Switzerland for this purpose."

Union Bank of India has raised its base rate by 50 basis points from 8.50% to 9.00% from 27th Dec.

Union Bank of India said that it is eyeing finances worth Rs 1,150 crore from the administration by March next year in order to increase its tier I capital.

"We hope to get the second tranche of Rs 1,150 crore as government capitalisation by March. This would help us to increase our tier I capital to 8.37 per cent from 7.9 per cent now," Mr. Nair said.

But, UBI added that in case of a postponement in procuring this fund, it will choose tier-II capital funds.




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