Union Bank (I)

Market Cap: Large Cap
Industry: Public Banks
ISIN: INE692A01016
NSEID: UNIONBANK
BSEID: 532477

INR

118.85

2.1 (1.8%)

BSENSE

Apr 11, 12:53 PM

BSE+NSE Vol: 64.67 lacs

Click here to access the older version

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Union Bank (I)

Indian Bank

Bank of Maha

Punjab Natl.Bank

IDBI Bank

Bank Of Baroda

Bank Of India

Canara Bank

St Bk of India

UCO Bank

I O B

Why is Union Bank of India ?

Strong Provisioning Practices with a Provision Coverage Ratio of 75.63%

Strong Long Term Fundamental Strength with a 44.66% CAGR growth in Net Profits

Healthy long term growth as Net Interest Income (ex other income) has grown by an annual rate of 29.05% and Net profit at 44.66%

Positive results in Dec 24

GROSS NPA(Q) Lowest at 3.85%
PAT(HY) At Rs 9,323.37 cr has Grown at 31.29 %
CREDIT DEPOSIT RATIO(HY) Highest at 75.64 %

Stock is technically in a Mildly Bearish range

The technical trend has deteriorated from Sideways on 04-Apr-25 and has generated -1.84% returns since then
A key technical factor - Bollinger Band has been Bearish since 04 Apr 2025

With ROA of 1.2, it has a Very Attractive valuation with a 0.8 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -20.51%, its profits have risen by 24.3% ; the PEG ratio of the company is 0.3

Majority shareholders : Promoters

Underperformed the market in the last 1 year

Even though the market (BSE 500) generated negative returns of -1.03% in the last 1 year, its fall in the stock was much higher with a return of -20.51%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Union Bank (I) should be less than 10%
Overall Portfolio exposure to Public Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Public Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Union Bank (I) for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Union Bank (I)

-21.24%

-0.51

39.84%

SENSEX

0.45%

0.03

14.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Net Interest Income Growth (5y)

29.05%

Net Profit Growth (5y)

44.66%

Advance to Deposit

70.41%

Capital Adequacy Ratio (Tier 1)

12.49%

Gross NPA (latest)

3.85%

Gross NPA (avg)

8.34%

Coverage Ratio (avg)

75.63%

Cost to Income (avg)

45.91%

Net Interest Margin (avg)

2.83%

Operating Profit to Assets (avg)

3.93%

ROA (avg)

0.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Price to Book Value

0.80

PEG Ratio

0.26

Dividend Yield

3.08%

ROE (Latest)

14.62%

ROA (Latest)

1.24%

Net NPA to Book Value

6.78

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

GROSS NPA(Q)

Lowest at 3.85%

PAT(HY)

At Rs 9,323.37 cr has Grown at 31.29 %

CREDIT DEPOSIT RATIO(HY)

Highest at 75.64 %

INTEREST EARNED(Q)

Highest at Rs 26,957.93 cr

PBT LESS OI(Q)

At Rs 1,476.20 cr has Grown at 50.9 %

NET NPA(Q)

Lowest at 0.82 %

-4What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 47,480.22 cr

NON-OPERATING INCOME(Q)

is 74.95 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Union Bank (I)

Gross NPA - Quarterly

Lowest at 3.85% and Fallen

each quarter in the last five quarters

MOJO Watch

Proportion of stressed loans given by the bank are falling

Gross NPA (%)

Interest Earned - Quarterly

Highest at Rs 26,957.93 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Interest Earned (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1,476.20 cr has Grown at 50.9 %

over average PBT of the previous four quarters of Rs 978.56 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Credit Deposit Ratio - Half Yearly

Highest at 75.64 % and Grown

in the last four periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Profit After Tax (PAT) - Quarterly

At Rs 4,603.63 cr has Grown at 20.4 %

over average PAT of the previous four quarters of Rs 3,824.76 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Net NPA - Quarterly

Lowest at 0.82 %

in the last five quarters

MOJO Watch

Proportion of stressed loans given by the bank are falling

Net NPA (%)

Here's what is not working for Union Bank (I)

Non Operating Income - Quarterly

is 74.95 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 47,480.22 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents