Improving Outlook on Assets Quality & Operating Performance Union Bank of India (UBI) has delivered improved performance in 2QFY17 with its operating profit rising by 22.1% yoy & 12.0% qoq to Rs18.2bn, which is ahead of our expectation. Fresh slippages declined to Rs34bn during the quarter from Rs36bn in 1QFY17 along with 36% qoq rise in upgrades and recovery to Rs6.7bn. However, provisioning expenses increased further by (+274.6% yoy & 19.8% qoq) to Rs16.2bn due to ageing of existing NPAs. The Bank utilized higher gain from sale of investment which rose by 81.3% yoy & 47.5% qoq to Rs4.7bn with a view to improving...