ECONOMY

Union Bank Of India Q1 Review – Operating Performance Showing Recovery Signs: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Union Bank of India reported healthy operating performance, supported by higher other income and improving margin trajectory, despite sluggish business growth.

Domestic net interest margin expanded by 71 basis points QoQ to 3.11%.

Slippages stood elevated (~4.8% annualised), led by higher slippages in the micro, small and medium enterprise and two large corporate accounts slipping in Q1 FY22.

However, higher write-offs and upgradations aided Union Bank of India’s stable asset quality on a sequential basis.

Special mention account-II overdue stood at 3.7% of loans, and restructured book stood at 2.7% of net loans.

We conservatively estimate return on asset/return on equity of 0.6%/11.4% by FY23E.

Click on the attachment to read the full report:

Motilal Oswal Union Bank of India Q1FY22 Result Update.pdf

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