Union Bank of India

Indicators

1 bullish · 6 neutral · 14 bearish

Verdict

Union Bank of India shows strong profitability and improving asset quality, though MSME credit stress and rising NBFC exposure need monitoring.

Why

• •Profitability and operational efficiency are strengthening, with net profit peaking at ₹5,316 Cr in Q4 FY26 and the cost-to-income ratio improving to 46.31%.
• •Asset quality is steadily improving across key segments, as fresh slippages drop to ₹218 Cr in Q1 FY27 and retail GNPA falls to 0.99%.
• •Low-cost funding remains stable with the CASA ratio holding above 35%, while regulatory capital buffers stay robust at 18.46%.
• •Credit stress in the MSME segment is mounting, with gross NPAs climbing to ₹6,863 Cr, alongside a sharp rise in NBFC/HFC lending exposure.

Signals