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Buy Union Bank of India; target of Rs 100: Motilal Oswal

Motilal Oswal is bullish on Union Bank of India recommended buy rating on the stock with a target price of Rs 100 in its research report dated January 21, 2023.

January 23, 2023 / 03:20 PM IST
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Motilal Oswal's research report on Union Bank of India

Union Bank of India (UNBK) reported 107% YoY growth in PAT to INR22.4b (in line) driven by lower provisions and margin expansion of 6bp QoQ to 3.21% in 3QFY23. Business growth was healthy fueled by the RAM segment while CASA ratio witnessed a slight moderation during the quarter. Fresh slippages moderated, which coupled with healthy recoveries and upgrades resulted in an improvement in asset quality ratios. PCR improved to ~75% in 3QFY23. Restructured book declined to 2.38% of loans from 2.60% in 2QFY23. The SMA book, at 72bp, was also fairly controlled.


We largely maintain our earnings assumptions and estimate an RoA/RoE of 1.0%/16.8%, respectively, by FY25. Retain BUY with a TP of INR100 (premised on 0.9x Sep’24E ABV).

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Union Bank of India - 22 -01-2023 - moti

Broker Research
first published: Jan 23, 2023 03:20 pm