Business growth steady; aims to sustain RoA at >1%

11 Mar 2024
5 Min read 
  • Union Bank of India is focused on enhancing underwriting standards and boosting credit and deposit growth.
  •  The bank expects credit growth of 10-12% in FY24.
  •  Asset quality is improving, with a steady decrease in NPA ratios.
  •  The bank aims to sustain a return on assets (RoA) of >1%.
  •  The bank's capital adequacy ratio (CAR) was impacted by recent increase in risk weight.
  •  The bank expects to sustain credit costs at around 0.5%.
  •  UNBK is the fourth largest PSU bank in terms of profitability.
  •  The bank is focused on improving its cost-to-income ratio and productivity gains.
  •  Valuation: Buy rating with a target price of INR165.
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