Union Bank of India share price target

Core PAT beat due to higher TWO recovery and lower opex Back-ended corporate loan growth led to NIM fall QoQ We trim NIM/core PAT for FY27/28E avg. 8bps/2.9%. UNBK saw a steady quarter; while NII was 1.7% lower due to 13bps fall in reported NIM to 2.64%, core PPoP was ~17% higher owing to higher TWO recovery and lower opex. NIM fell QoQ due to the repo cut in Dec'25 and back-ended corporate growth of 9.2% QoQ. Bank had preferred profitability over growth, however, with new MD at the helm, it has slightly changed its stance to quality growth. We cut NIM/core PAT for FY27/28E...

Union Bank of India (UNBK) reported 4QFY26 PAT of INR53.2b (up 7% YoY/up 6% QoQ, 18% beat), led by NPA recoveries and lower opex. This was partly offset by lower NII and higher-than-expected provisions.

Another +1%/+15% RoA/RoE quarter. Asset quality continued to remain healthy with gross/net slippages at 78/6bps. Credit growth saw a ~200bps sequential acceleration, driven by retail segment, while CASA ratio improved meaningfully by 145bps y/y.

Overall credit growth remains sub-par for Union Bank (UNBK) at 8% YoY, but the bank managed to report a ~11% PAT beat at Rs50bn (RoA of 1.3%), mainly due to lower provisions as banks paused to build provisions towards ECL in Q3.

Union Bank of India (UNBK) reported 3QFY26 PAT of INR50.2b (up 9% YoY/up 18% QoQ, 32% beat), led by NIMs expansion, and significantly lower-than-expected provisions.

Union Bank of India, incorporated in 1919, is a leading public sector bank with ~75% government ownership. Following its merger with Andhra Bank and Corporation Bank in 2020, it has expanded its footprint across India and internationally, with branches in Dubai, Sydney, London, and Malaysia....

Lower margins and weaker non-interest income led to Union Bank’s operating profits degrowth. Yet, its C/I was below 50%, suggesting decent overall operating performance.

Union Bank of India (UNBK) reported 1QFY26 PAT of INR41.2b (11.9% YoY growth, in line), supported by a lower tax rate. NII declined 3.2% YoY to INR91.1b (in line).

UNBK saw a weak quarter owing to lower fees/NII which led to core PPoP being a miss by 17.5%. PSLC income opportunity was not available in Q1'26 due to change in gold loan regulations. Hence, we cut fees for FY26/27E by ~10%. With RBI tweaking back gold loan regulations, agri growth may improve supporting fees. Reported NIM declined by 11bps QoQ to 2.76% due to fall in loan yields by 22bps QoQ despite a decline in corporate and increase in retail. As a result, we trim NIM for FY26/27E by 7bps/8bps to 2.53%/2.61%. Asset quality remains a...

UNBK saw a strong quarter owing to beat on all fronts i.e. NII, fees and asset quality resulting in core PBT being 9.4% above PLe. NII was 1.8% higher as NIM was cushioned due to (1) shedding of high cost bulk deposits in the last quarter and (2) avoiding disbursal of lower yielding loans. Loan growth was muted at 9.5% YoY; over FY25-27E we are factoring a loan CAGR slightly lower than the system at 10%. Asset quality was superior as net slippages were lower led by controlled gross slippages and healthy recoveries while provisioning for Q4'25...

Underpromise, overdeliver

Strong capital adequacy a lever for growth Gaurav Jani gauravjani@plindia.com | 91-22-66322235 Aditya Modani adityamodani@plindia.com | 91-22-66322257...

Union Bank hosted an Analyst Meet to give an update on its recent performance and outlook on growth, margins, and asset quality.

Union Bank of India (UNBK) reported 3QFY25 PAT of INR46b (28.2% YoY, 27% beat), led by lower provisions and higher-than-expected other income.

Strong non-interest income (treasury and recovery) counterbalanced lower margins (due to penal charges reclassification), resulting in Union Bank of India’s decent operating performance and better RoA.

We attended the analyst meet hosted by the entire top management team of Union Bank (UNBK). The management emphasized the bank's efforts in delivering profitable
growth while continually making investments in the business and enhancing the technological capabilities of the bank.

Union Bank reported an 11% miss on PAT at Rs33bn (vs Emkay est.: Rs37bn)
owing to impact of wage revision (Rs13.3bn) and tax expenses, which overrode
the benefits from higher treasury income and reversal of NPI provisions.

Union Bank of India (UNBK) reported 19% YoY growth in PAT at INR33b
(14% miss) in 4QFY24 as opex increased 13.7% YoY to INR76b (24% higher
than MOFSLe).