Whalesbook
Anand Rathi Initiates With Buy on Union Bank of India
Anand Rathi initiated coverage with a strong Buy recommendation on Union Bank of India (UBI), flagging a 12-month price target of ₹208. The brokerage's report, dated January 15, 2026, highlights the bank's solid operational performance and promising outlook.
Strong Quarterly Performance Underpins Outlook
The bank delivered a compelling financial quarter, with Return on Assets (RoA) and Return on Equity (RoE) figures approaching +1% and +15%, respectively. Asset quality remained a key strength, evidenced by gross and net slippages reported at a mere 78 basis points and 6 basis points. This robust performance suggests effective risk management and operational efficiency.
Credit Growth and Deposit Momentum
Union Bank of India experienced a significant sequential acceleration in credit growth, estimated at approximately 200 basis points, largely propelled by the retail segment. Concurrently, the bank's Current Account Savings Account (CASA) ratio improved substantially by 145 basis points year-on-year. This indicates stronger customer deposit traction, providing a stable and cost-effective funding base.
Valuation and Future Prospects
Anand Rathi values Union Bank of India at 1 times its FY28 estimated Price to Book Value (P/ABV), justifying the ₹208 target. The research firm anticipates continued credit growth from current levels and sustained profitability, positioning UBI favorably within the public sector banking space. The report suggests operational performance was in line with expectations, benefiting from margin expansion and consistent fee income.