The Reserve Bank of India (RBI) has taken major action against Union Bank of India (UBI). A fine of Rs 63.60 lakh has been imposed on this bank for violating regulatory instructions. RBI said on Friday that it had inspected the financial position of the bank as on March 31, 2023 and March 31, 2024. During this, the bank found that the required amount was not transferred within the stipulated time limit to the Depositor Education and Awareness Fund (DEAF) in UBI. In violation of the guidelines for mortgage-free agri loans, the bank sought mortgage on agri loans up to Rs 1.60 lakh in some cases.
In view of these violations, RBI had issued a show cause notice to the bank. After considering the bank’s reply, additional clarification and arguments given in personal hearing, it was decided that the rules have been violated. After this, this fine has been imposed on Union Bank of India. Earlier last week, a fine of Rs 1.66 lakh was imposed on the bank on issues related to sending dirty notes and discrepancies in withdrawing cash from ATMs.
Share status
Talking about the bank’s stock, it is at Rs 140.40. As compared to last Thursday, this stock closed 0.25% higher. In June 2024, this stock had gone up to Rs 172.45. At the same time, in January 2025, this stock remained at the level of Rs 100.75. This is the 52-week high and low of the stock. Talking about the market capital of this government bank, it was Rs 1,07,175.82 crore.
Bank results
Union Bank of India’s net profit increased by 50 percent to Rs 4,985 crore in the January-March quarter of the previous financial year. The bank’s profit was Rs 3,311 crore in the same quarter of the financial year 2023-24. The total income of the bank increased to Rs 33,254 crore in the March quarter of the last financial year 2024-25, as against Rs 31,058 crore in the same quarter a year ago.
