Though recapitalisation of Rs45.2bn to UBI announced by the Government of India is long-term positive, it may further negatively impact its book value (as dilution in at discount to current book) and RoE in the immediate term. We expect UBI's credit cost to rise in the medium term, which will adversely impact its earnings over next 2-3 quarters. Thus, the Bank is expected to witness elevated level of credit cost, which will keep its earnings and return ratios subdued over next 3-6 quarters. Hence, we maintain our HOLD recommendation on the stock with a...