Union Bank of India up 3% after inviting bids for sale of NPAs

Union Bank of India was up 3% at around 12:30 PM today after the company invited initial bids from asset reconstruction companies, banks and non-banking finance companies for the proposed sale of 10 non-performing assets worth Rs 7.21 billion.

Bidders have to complete due diligence on these loans by Nov 10, and the last date of submission of bids is Nov 17. Gross bad loan ratio of the bank rose to 12.63% as on Jun 30 from 11.17% on Mar 31 and 10.16% a year ago.Union Bank of India is currently trading at Rs 182.05, up by Rs 5.35 or 3.03% from its previous closing of Rs 176.7 on the BSE.

The scrip opened at Rs 177 and has touched a high and low of Rs 184.8 and Rs 177 respectively. So far 3972032(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 12836.01 crore.Union Bank of India (UBI) is one of the largest government-owned banks in India (63.44% government stake). The bank’s FY17 loan book stood at Rs.2.9 lac cr. Its FY17 loan mix attributed to retail -15.9%, Agri -16.6%, MSME- 22.8% and medium and large corporate 44.7%. Also, its GNPA & NNPA for FY17 stood at 11.7% & 6.57% respectively.