Motilal Oswal - Union Bank of India (UNIONBANK) MOSL: UNION BANK OF INDIA (Neutral)-Elevated provisioning leads to pre-tax loss-net slippages down QoQ

Report

Motilal Oswal

Alpesh Mehta

MOSL: UNION BANK OF INDIA (Neutral)-Elevated provisioning leads to pre-tax loss-net slippages down QoQ

â€‹Union Bank of India: Elevated provisioning leads to pre-tax loss; net slippages down QoQ

(UNBK IN, Mkt Cap USD1.9b, CMP INR188, TP INR174, 7% Downside, Neutral)

UNBK reported pre-tax loss of INR3.1b, led by elevated provisioning (+42% beat). While net income was largely in line, controlled opex performance (7% beat) led to a beat on PPoP (+51% YoY, 12% beat).
Key Highlights: (1) Provisions were impacted by high MTM losses on investments (INR6b); NPL provisions were stable, yet elevated (INR2b). (2) Opex grew just 2% YoY and 5% QoQ. Employee expenses declined 11% YoY (-3% QoQ). (3) NII grew 15% YoY, led by strong growth in interest-earning assets. Domestic NIM expanded 36bp QoQ to 2.4%, as 3Q was impacted by interest income reversals. (4) Fee-based income grew 16% QoQ.
Net slippages declined 31% QoQ to INR20.3b (2.9% net slippage ratio v/s 4.5% in 3Q), led by moderation in corporate slippages to ~INR20b (v/s INR30.4b in 3Q), and higher recoveries of INR9.3b (v/s INR3.5b in 3Q). Overall pool of NSL (NNPL + OSRL + other stressed loans) increased 2% QoQ. The bank sold 2 accounts worth INR1.89b to ARCs (NAV: INR1.13b; sale value: INR1b). Corporate slippages had a lumpy account contribution of INR13b related to Metals.

09/05/2017 12 EN

Underlying

Union Bank of India

Union Bank of India operates through more than 4000 branches across the country. Co. serves its clients' need of saving maximization by offering specialized deposit products like current deposit, term deposit and flexi deposit. Co. offers products and services such as working capital finance, term loan, infrastructure finance, line of credit and many more. Co.'s Government Business Division offers a bouquet of products for its customers: Pension payments, Collection of various Taxes, Deposit Schemes like Senior Citizens Deposit Scheme & Public Provident Fund Accounts, Investment opportunities in Government Bonds, Old age security Schemes like the New Pension System.

See profile

INE692A01016 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

See profile

Analysts

Alpesh Mehta

Other Reports on these Companies

Moody's Investors Service

Union Bank of India: Second Party Opinion – Sustainable Financing Framework Assigned SQS2 Sustainability Quality Score

We have assigned an SQS2 to Union Bank of India's sustainable financing framework, which is aligned with relevant principles and demonstrates a significant contribution to sustainability.

January 13, 2026 January 13, 2026 1 EN

Motilal Oswal

MOSL : UNION BANK OF INDIA: Earnings beat driven by a healthy operating performance

UNION BANK OF INDIA: Earnings beat driven by a healthy operating performance (UNBK IN, Mkt Cap USD3.9b, CMP INR47, TP INR65, 38% Upside, Buy) Asset quality improves sharply UNBK reported a 21% YoY growth in PAT at INR18.5b in 2QFY23 (10% beat), driven by higher NII and other income and tax reversals. However, the same was offset by higher than expected provisions. However, fresh slippages moderated by 31% QoQ, led by lower Corporate and Retail slippages. This, coupled with higher write-offs and healthy recoveries and upgrades, resulted in an improvement in asset quality ratios. The rest...

EUR 120.00

October 21, 2022 October 21, 2022 10 EN

TheScreener

UNION BANK OF INDIA sees an upgrade to Positive due to a better fundamental star rating

The general evaluation of UNION BANK OF INDIA (IN), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date January 28, 2022, the closing price was INR 47.05 and its potential was estimated at INR 55.08.

Free Trial

January 29, 2022 January 29, 2022 1 EN

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality (HOMEFIRS IN, Mkt Cap USD0.9b, CMP INR802, TP INR1025, 28% Upside, Buy) HomeFirst’s 2QFY23 PAT grew 21% YoY/6% QoQ to INR543m (in-line). Credit costs grew 37% QoQ to INR50m (MOFSLe: INR31m). Underlying this, the NII grew 58% YoY to ~INR1b (in-line). ‘Other income’ grew 13% QoQ, driven primarily by higher treasury gains and investment income. Opex was 7% higher than estimated and grew 47% YoY and 14% QoQ, led by investments in new branches and resultant higher employee expenses. Disbursements grew 36%...

EUR 120.00

October 21, 2022 October 21, 2022 12 EN

Aliasgar Shakir

Aliasgar Shakir

MOSL : SHOPPERS STOP: Ticking the right boxes

. SHOPPERS STOP: Ticking the right boxes (SHOP IN, Mkt Cap USD1b, CMP INR780, TP INR805, 3% Upside, Neutral) Aided by price hikes, SHOP reported a healthy 19% revenue growth in 2QFY23 from pre-COVID levels (8% beat) on healthy (+10%) SSSG and sustained volumes. EBITDA grew 2.3x YoY (22% over pre-COVID levels), with a 540bp margin improvement. 1) A strong recovery in revenue, backed by an improved pricing; 2) expansion within the Beauty and Private Label segment; and 3) healthy annual 12/15 store additions for SHOP/Beauty are expected to drive business growth going forward. We expect a r...

EUR 120.00

October 21, 2022 October 21, 2022 13 EN

Tushar Manudhane

Tushar Manudhane

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities (ERIS IN, Mkt Cap USD1.2b, CMP INR708, TP INR860, 21% Upside, Buy) Eris Lifesciences (ERIS) delivered better than expected 2QFY23 performance, led by superior traction in new launches and improved operating leverage. ERIS is notonly sustaining the momentum in its recently launched products, but it is also preparing itself for an aggressive pace of new introductions. We reiterate our earnings estimate for FY23/FY24 and continue to value ERIS at 22x 12M forward earnings to arrive at a price target of INR860. We re...

EUR 120.00

October 21, 2022 October 21, 2022 11 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

MOSL: UNION BANK OF INDIA (Neutral)-Elevated provisioning leads to pre-tax loss-net slippages down QoQ

Union Bank of India: Second Party Opinion – Sustainable Financing Framework Assigned SQS2 Sustainability Quality Score

MOSL : UNION BANK OF INDIA: Earnings beat driven by a healthy operating performance

UNION BANK OF INDIA sees an upgrade to Positive due to a better fundamental star rating

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe