In-line earnings; loan growth surges

Company

23 Jan 2024 | 5 Min Read

Union Bank of India reported a 60% YoY growth in PAT, driven by controlled provisions and healthy other income.

NII grew 6% YoY, but missed expectations, as NIMs moderated to 3.08%.

Loan book grew strongly by 14% YoY, led by growth in the Corporate and Agri segments.

Asset quality improved, with GNPA/NNPA ratios declining to 4.8%/1.1%.

The bank expects to sustain margins at around 3% and aims for advances growth of 10-12%.

Retain BUY rating with a revised TP of INR165.