Union Bank of India share price target

Benefit from revival in PSU Banks: With the government focusing on reviving growth in the economy, PSU Banks will have to play a key role in jumpstarting infrastructure and capital intensive industries. This is likely to result in consolidation and pushing up reforms in this space.

The bank reported a net loss of Rs3,369cr in the current quarter, Union bank of India (UBI) provides various mainly on account of more than 3x increase in provisions sequentially. banking products and services through four With an improvement in NIM, the net interest income (interest income segments, namely, Treasury Operations, Corporate less interest expense), has grown by 18% YoY to reach Rs2,602 cr. Muted growth in loans and advance by 3.7% YoY, led by retail, agriculture and MSME loans, while the deposits have witnessed a growth of 1.8% YoY, with CASA mix improving 140bps YoY to 34.7%....

Slippages of Rs32.7bn continued to be at higher rate and from all sectors Union Bank posted loss of Rs33.6bn of PAT (v/s PLe of Rs1.7bn loss) on back of making higher provisions from RBI's divergence report (Rs22.8bn) and ageing of NPA helping improve PCR to 58.3% from 51.4% in Q3FY19. We have been mentioning that bank remains under provided on provisions and lags amongst banking peers (partly also on delayed recognitions) and hence going ahead will continue to see higher provisions (enhancing PCR) keeping...

Deposits grew by 2.2% (YoY) with CASA portfolio registering a growth of ~5.5% during the same period. GNPA & NNPA decreased by 8bps and 85bps at 15.7%& 8.4% resp....

Union Bank of India Q2FY19 results Comment NII fell to Rs. 2493.12 Cr in Q2FY19 compared to Rs. 2626.12 Cr in Q1FY19. NII rose by 7.43% ( Rs. 172.39 Cr ) when compared with the same period last year

Union Bank of India operates through over 4200+ branches across the country. The Bank has a large clientele base of over 49m.The retail, agriculture and MSME-Micro Small Medium Enterprises (RAM) sectors comprises about ~55% of domestic loan book (as of Q4FY18). Reported a net loss of 2583crs in Q4FY18 on account of one off provisions and investment depreciation. Both NII and NIM de- grew by 8% & 37bps on a YoY basis. Advances/Deposits grew by 4%/8%yoy with CASA portfolio registering a growth of ~7% yoy. GNPA/NNPA is up by 456bps and 185bps YoY to 15.7% and 8.4% respectively while Cost to Income ratio reflected a deterioration on a YoY basis (49% vs 44%)....

NII decreased to Rs. 2193.07 Cr in Q4FY18 compared to Rs. 2548.26 Cr in Q3FY18. Union Bank of India Q4FY18 results Comment

NII declined 14%/8% QoQ/YoY, majorly due to interest income reversal of INR4.4b. This was partly offset by interest on IT refund of INR4.5b (booked in other income). Domestic/global NIM came in at 1.99%/1.9% (v/s 2.34%/2.23% in 3QFY18). Muted trading gains of INR1.3b (-77% YoY) led to just 3% growth in other income. Opex grew 5% YoY, taking the CI ratio to 48.6%. The bank up-fronted gratuity provisions in the quarter. Slippages came in at INR100.4b (INR41.9b in 3QFY18), with a spike in corporate slippages (INR7.9b v/s INR3.4b in 3Q). The bank reported FY17...

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...

UNBK reported a loss of INR12.5b. PPoP growth of -15%/-11% QoQ/YoY was nullified by elevated provisions of INR32.5b (8% QoQ decline) as the bank provided INR9.9b towards the NCLT 2nd list in advance, thereby taking care of all provisioning needed towards these accounts by FY18. Provisions also included INR481m of additional provisions towards standard accounts in telecom and power sector. NII growth picked up on a moderate base to 19% YoY to INR25.5b, even with an interest reversal of INR3.8b. Domestic/Global NIM came in at2.34%/2.12% (2.19%/2.08% in 2QFY18). Muted trading gains of (INR60mcompared to INR4.8b in 2Q) led to 35% YoY decline in in other income.