Union Bank of India (UBI) has negatively surprised us on both earnings and asset quality fronts in 4QFY16, primarily due to higher slippages as it has recognised further impairments and provisioning impact of asset reclassification. Slippages doubled to Rs61.7bn at annualized ratio of 9.7% in 4QFY16 v/s Rs34.1bn at annualized ratio of 5.4% in 3QFY16 and Rs129.5bn at annualized ratio of 5.1% in full FY16. Resultantly, UBI has reported Rs15.6bn provisioning, marking a rise of 54.9% yoy and 26.4% qoq. UBI's GNPA rose by 165bps qoq to 8.7% while NNPA inched up by 118bps qoq to 5.25% in 4QFY16 for which its PCR declined to 42% vis--vis 44.2% in 3QFY16...