BQ Prime'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 BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Union Bank of India reported 107% YoY growth in profit after tax to Rs 22.4 billion (inline) driven by lower provisions and margin expansion of 6 basis points QoQ to 3.21% in Q3 FY23.
Business growth was healthy fueled by the risk assessment model segment while current account and savings account ratio witnessed a slight moderation during the quarter.
Fresh slippages moderated, which coupled with healthy recoveries and upgrades resulted in an improvement in asset quality ratios. Provision coverage ratio improved to ~75% in Q3 FY23.
Union Bank of India's restructured book declined to 2.38% of loans from 2.60% in Q2FY23. The special mention account book, at 72 bps, was also fairly controlled.
We largely maintain our earnings assumptions and estimate an return on asset/return on equity of 1.0%/16.8%, respectively, by FY25.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
