Union Bank of India Share Price

Union Bank of India

Union Bank of India was founded on November 11, 1919, in Mumbai, with Seth Sitaram Poddar as its promoter. Its registered office was later inaugurated by Mahatma Gandhi at Mumbai Samachar Marg. Today, the bank is led by Managing Director Manimekhalai A.

As one of India’s largest state-owned banks, Union Bank of India is a listed company, with the Government of India holding a 74.76% stake. The bank also has a strong international presence, with branches in Hong Kong, Dubai (DIFC), and Sydney, and representative offices in Shanghai, Beijing, and Abu Dhabi. In the United Kingdom, it operates through its wholly owned subsidiary, Union Bank of India (UK) Ltd.

Diverse Banking Services

Union Bank of India provides quite a lot of financial products and services to individuals as well as business entities. It provides retail banking, corporate and wholesale banking, treasury operations, cash management, merchant banking, online securities trading, depository services, and clearing bank operations.

To stay abreast of evolving trends in finance, the bank has continuously added to its services. One such watershed moment was 2003 with the introduction of the Core Banking Solution (CBS), which facilitates customers to see their accounts whenever and wherever. Simultaneously, it began the Union Express Remittance program to facilitate fast and easy repatriation by Non-Resident Indians (NRIs) in West Asia.

Over the years, Union Bank of India has formed several strategic partnerships to expand its services and offer more to its customers. It joined hands with New India Insurance Company to sell insurance products and collaborated with HDFC Standard Life to provide group life insurance for home loan borrowers.

In 2004, the bank introduced Union BillPay, an online bill payment service launched in partnership with Billdesk. Its commitment to technology was even further highlighted through a collaboration with Corporation Bank to share Cash Management System infrastructure. In 2007, the bank took yet another step forward by launching SMS banking services. Union Bank has also grown into new areas like wealth management so as to offer specialized services for high-net-worth individuals (HNIs).

The UnionCard, the international credit card of the bank, introduced in 2005 in partnership with VISA, was another benchmark in the diversification of its product suite. Union Bank also commenced offering specialty products such as the Union White Card for dairy units and entered into an alliance with Principal PNB Asset Management Company to distribute mutual fund schemes during this time. The bank has proactively extended its customer base with the installation of ATMs, the launching of gift and prepaid cards, and the provision of electronic transaction products such as online NEFT and RTGS transactions.

Growth and Nationalization

Union Bank of India entered a significant growth phase during the 1960s. A defining moment came on July 19, 1969, when the bank was nationalized as part of the Government of India’s broader strategy to bring key financial institutions under state control. With this transformation, the bank’s name officially changed to Union Bank of India. In 1972, the bank reinforced its commitment to financial inclusion by sponsoring four regional rural banks, ensuring access to banking services in underserved regions.

Key Milestones in Expansion and Services

In 1975, the bank diversified its business by taking over Belgaum Bank Ltd., enhancing its presence in the region. In a remarkable feat, its Staff Training College in Bangalore was ISO 9001 certified in 2001. The bank achieved a new milestone in 2002 when it issued its Initial Public Offering (IPO), resulting in its listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This public listing assisted Union Bank to raise new capital and enhance its market reputation. In 2003, the bank launched Core Banking Solutions (CBS), facilitating "Anytime, Anywhere Banking" throughout its network.

2004-2006

Between 2004 and 2006, Union Bank of India expanded globally while embracing digital and financial innovations. It opened representative offices in Dubai and Doha, marking its entry into key international markets.

The bank also broadened its services through strategic partnerships. Collaborations with HDFC Standard Life and the Export Credit Guarantee Corporation (ECGC) allowed it to enter the bancassurance space. It launched the Union Miles Scheme with TVS Motor Company to offer two-wheeler financing and partnered with SBI Life Insurance to provide home loan customers with insurance coverage.

These initiatives expanded the bank’s reach and strengthened customer trust. Its efforts were recognized globally when Union Bank earned a spot on Forbes’ list of the 2000 biggest and most powerful companies worldwide.

2007-2010

The bank introduced SMS banking services to provide real-time updates to customers. During this time, the bank also expanded in China with its first representative office in Shanghai. In 2008, Union Bank set up an overseas branch office in Hong Kong that was equipped for cross-border banking services. It also brought out some electronic initiatives like prepaid cards, online NEFT (National Electronic Funds Transfer), and RTGS (Real-Time Gross Settlement) services to organize and modernize the fund transfer process.

Recognizing the growing needs of high-net-worth individuals (HNIs), the bank launched dedicated Wealth Management Services to offer personalized financial solutions. By 2009 and 2010, the bank’s domestic network saw remarkable growth, with the addition of 247 new branches and 536 ATMs. This expansion was accompanied by the opening of representative offices in Sydney and Beijing, further cementing its presence in the Asia-Pacific region. Around this time, Union Bank received approval from the Reserve Bank of India (RBI) to set up branches in Shanghai and Antwerp.

2011-2017

From 2011 to 2017, the bank paid attention to consolidating its market share and raising capital to push for future growth. In 2011, its total business had grown to ₹3.2 lakh crore. During the same year, the Government of India increased the bank's capital by infusing ₹1,096 crore through preferential equity shares.

Between 2012 and 2015, the bank increased its presence in international markets. It raised USD 350 million of senior unsecured notes under a USD 2 billion Medium-Term Note (MTN) programme. The government also continued to support the growth of the bank, infusing another ₹1,080 crore of capital to fund its expansion and future plans.

During 2016 and 2017, Union Bank of India aggressively pursued its moves to consolidate its business and enhance shareholder value. It acquired the Union KBC Asset Management Company, and it became a wholly owned subsidiary, enhancing its asset management expertise. The bank also made a substantial financial transaction by divesting its 5% holding in TransUnion CIBIL for ₹190.62 crore, releasing value from its holdings. To further strengthen its capital pool, Union Bank issued ₹2,000 crore in Qualified Institutional Placement (QIP).

Brief Overview

Union Bank of India has grown into a leading name in the banking world by embracing digital innovation, expanding globally, and keeping customer needs at the center of its services. Over the years, it has adapted to changing times while maintaining a strong focus on providing reliable and accessible banking solutions. Backed by the Government of India and supported by a rich legacy, the bank continues to be a key player in the country’s financial landscape.