Summary Bank of India - Company Profile and SWOT Analysis, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Bank of India (BOI) is a provider of a range of retail and corporate banking and related financial solutions. Its retail banking products offered to individuals include comprise of current and savings acc...
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-of...
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....
UNION BANK OF INDIA: Stable quarter; asset quality improvement continues (UNBK IN, Mkt Cap USD4.5b, CMP INR49, TP INR65, 31% Upside, Buy) Union Bank of India (UNBK) reported healthy earnings, supported by recovery from the DHFL resolution. Furthermore, fee income trends improved, while domestic margins declined; muted loan growth affected NII growth. On the other hand, asset quality performance was stable despite elevated slippage, largely led by Corporate – this includes slippage from S...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
UNION BANK OF INDIA: Operating performance showing recovery signs (UNBK IN, Mkt Cap USD3.5b, CMP INR38, TP INR55, 45% Upside, Buy) Slippages remain elevated; higher PCR/recovery outlook provides comfort UNBK reported healthy operating performance, supported by higher other income and improving margin trajectory, despite sluggish business growth. Domestic NIM expanded by 71bp QoQ to 3.11%. Slippages stood elevated (~4.8% annualized), led by higher slippages in the MSME and two large corp...
FINANCIAL INSTITUTIONS CREDIT OPINION 9 September 2020 Update RATINGS Union Bank of India Domicile Mumbai, India Long Term CRR Ba1 Type LT Counterparty Risk Rating - Fgn Curr Outlook Not Assigned Long Term Debt (P)Ba1 Type Senior Unsecured MTN - Fgn Curr Outlook Not Assigned Long Term Deposit
Q2FY20 Results Union reported a loss of Rs12bn versus our estimate of Rs4bn. We had factored in a loss due to a DTA mark-down. While the bank has not adopted the new tax scheme and therefore not remeasured DTA, it still reported a big loss due to divergence provisioning of Rs16bn. The bank’s divergence with RBI on provisioning was on two accounts where RBI asked for the security cover to be marked down to zero and two accounts where RBI asked for back dating NPLs. Slippages rose sharply qoq...
Q1FY20 Results Union’s PAT of Rs2bn was an improvement over the loss in 4Q19 and a growth of 76% yoy, on a low base. However, profitability remains weak with a decline in NIMs, slippage ratio remaining high at 3.9% and zero yoy growth in loans. Loan growth was nil yoy. While domestic loans grew 3% yoy, overseas loans declined 26%. Retail loans grew 16% yoy. NIMs declined sharply by 15bps qoq to 2.12% due to higher cost of funds that rose 30bps qoq. NII declined 4% yoy and 3% qoq. Slippag...
Q3FY19 result highlights Union’s PAT of Rs1.5bn was significantly lower than our estimate of Rs6bn driven by lower loan growth, higher opex and higher credit cost. Excluding trading gains and write back of investment depreciation the bank reported a pre-tax loss of Rs5.3bn versus profit of Rs1.8bn qoq. Loan growth remained weak declining marginally yoy and qoq. While retail loan growth was strong at 22% yoy and 7% qoq driven by portfolio buyouts of home loans of Rs30bn, wholesale loans decli...
Opportunity in EM countries Our cautious outlook and expectation for continued downward pressure on global equities remains intact. Broad global indexes (MSCI ACWI, ACWI ex-U.S., EAFE, and EM) are all trading within patterns of lower highs and lower lows, leading us to believe the most likely scenario is that this near-term bounce is likely nothing more than a countertrend rally before longer-term downtrends reassert themselves. • Opportunity in EM. Both a top-down and bottoms-up analysis po...
Indian banks are going through the final phase of their balance-sheet clean up. This completes a five-year process of purging legacy NPLs from the sector, and should see large public-sector banks return to profitability over the next 12 to 18 months. While we are positive on the sector's fundamental momentum, we observe that spreads are relatively tight. We also expect significant issuance over the next two years as 57% of hard-currency Indian bank bonds will mature by 2020.
Union Bank of India: Another quarter of loss; asset quality challenges to persist (UNBK IN, Mkt Cap USD1.6b, CMP INR88, TP INR97, 10% Upside, Neutral) UNBK reported a loss of INR25.8b. PPoP growth of 14% QoQ was nullified by elevated provisions of INR56.7b (+132% YoY). NPA provisions came in at INR56.4b (+275% YoY) and provisions for investment were at INR11.2b (+85% YoY). NII declined 14%/8% QoQ/YoY, majorly due to interest income reversal of INR4.4b. This was partly offset by interest ...
Q3FY18 results highlights Union Bank reported a loss of Rs12.5bn driven by lower trading gains, higher MTM provisions and high loan loss provisions. The loss would have been higher if the bank did not debit interest expenses on AT1 bonds to shareholders’ funds. The total interest expense debited to net worth is Rs2.7bn for 9MFY18 and Rs0.91bn for 3Q18. In the earlier quarters the bank had charged this interest through the income statement but in 3Q it decided to debit reserves because of wea...
Union Bank of India: Asset quality pressure continues; maintain Neutral (UNBK IN, Mkt Cap USD1.5b, CMP INR128, TP INR145, 13% Upside, Neutral) 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 stand...
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