Union Bank of India at 52-week high, stock rallies 42% so far in October

Post merger of Andhra Bank and Corporation Bank, Union Bank has raised capital which has improved the capitalisation levels of the bank enhancing its ability to absorb asset quality pressures

Shares of Union Bank of India (Union Bank) hit a 52-week high at Rs 51.70, up 8.5 per cent on the BSE in Thursday’s intra-day trade. The stock has rallied 14 per cent in the last two trading days on improved business outlook, despite weakness in the broader market. The stock of the state-owned lender surpassed its previous high of Rs 49.75 touched on October 19, 2021.

Thus far in October, the stock has appreciated by 42 per cent, after most of the rating agencies upgraded outlook of the bank from negative to stable.

In April-June quarter (Q1FY22),