Anand Rathi's research report on Union Bank of India
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. Operating performance was largely in line with our estimates, aided by margin improvement and stable fee income. Looking ahead, we expect credit growth to pick up the from current levels, coupled with steady profitability.
Outlook
We maintain BUY rating on the stock with a 12-month TP of Rs208, valuing it at 1x FY28E P/ABV.
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