Union Bank of India share price target

(GNPA) ratio declined 28 bps q-o-q to 12.35%, while net NPA ratio stood at 6.70% versus 7.47% in the previous quarter. Addition of stressed assets during Q2FY2018 was lower as accounts worth Rs. 2,686 crore turned NPAs as against Rs. 4,453 crore in the previous quarter. The bank has undertaken 5:25 restructuring in accounts worth Rs. 174 crore, strategic debt restructuring (SDR)...

Union Bank of India Q1FY18 results comment NII fell to Rs. 2242.6 Cr in Q1FY18 compared to Rs. 2387.03 Cr in Q4FY17.

NII rose to Rs. 2387.03 Cr in Q4FY17 compared to Rs. 2136.62 Cr in Q3FY17.

Q3FY17 PAT at Rs 1 bn was significantly below our estimate, dragged down by higher provisions (up 35% YoY). Asset quality continues to be a pain point GNPAs rose ~100 bps QoQ to 11.7% despite materially higher write-offs (Rs 4 bn). Slippages remaine delevated (~5% of advances) while recoveries a..

NII fell to Rs. 2136.62 Cr in Q3FY17 compared to Rs. 2277.44 Cr in Q2FY17. NII increased by 7.02% ( Rs. 140.11 Cr ) when compared with the same period last year.

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...

UNKB’s stress addition remained elevated with slippages of 5.4% ann. and incremental 5:25/SDR of Rs 10.2/13.5bn. G/NNPA jumped ~13% to hit 10.2/6.2%. Loan growth was flat, even as the focus segments (Retail, Agri and MSME) grew 8-19% to form ~51% of loans. CASA ratio at 31.5% (+300bps YoY) was led by 15% SA growth. Net earnings were lower than estimates with NIM decline and higher provisions (2.1x YoY), despite controlled opex and higher treasury and Fx. income (+26% QoQ).HDFC Securities Maintain NEUTRAL with TP of Rs 137 (0.9x FY18E ABV of Rs 152).

Trendlyne has 7 reports on UNIONBANK updated in the last year from 3 brokers with an average target of Rs 168. Brokers have a rating for UNIONBANK with 1 downgrade,2 price downgrades and 2 price upgrades in past 6 months.

Better show on operating front, asset quality remains weak Union Bank of India (UBI) has reported improved performance with its operating profit rising by 9.2% yoy & 15.3% qoq to Rs16.3bn in 1QFY17, which is ahead of our expectation. The Bank reported Rs1.7bn net profit (+73% qoq and -67.9% yoy) primarily due to healthy growth in operating profit, 13.5% sequential decline in provisioning expenses to Rs13.5bn along with write-back of differed tax assets worth Rs2.5bn. Despite sequential moderation, fresh slippages remain elevated at Rs36bn in 1QFY17 compared to average run rate in pre-AQR quarters....

Despite better than expected fall in cost of funds (39bp QOQ to 5.8%), healthy SA growth (+15% YoY) elevated slippages continue to mar margin performance (flat QoQ at 2.3%) NII inline at INR21b (flat YoY). With CET 1 ratio at 8.3%, capital conservation efforts continue. Overall loans...

Union Bank's 4QFY16 PAT de-grew by 78% YoY to INR961m (57% miss), driven by weak core PPoP growth (-15% YoY) and high credit costs (3% v/s 2% in 3Q). Slippages increased sharply QoQ to INR61.7b (~10% of loans, annualized) v/s...