Union Bank of India 3QFY2016 Results: Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research - Banking, Angel Broking) on Union Bank of India 3QFY2016 Results:

"Union Bank of India reported 74% decline in PAT. Provisions rose 45.3% YoY to INR 1,237cr which included provisions on account of an intense asset quality review conducted by the Reserve Bank of India (RBI). This led to the sharp decline in the PAT which came at INR 78.5cr as against INR 302.4cr for 3QFY2015. As expected, asset quality deteriorated during the quarter. The Gross NPA ratio for the bank came in at 7.05% against 6.12% QoQ while the Net NPA ratio came at 4.07% against 3.39% QoQ. Also, more stress is left to come in the next quarter since the bank has told that it will implement the directions given by the RBI in the time-frame mentioned which ends in March 2016. Hence, we maintain our NEUTRAL view on the stock."

Shares of UNION BANK OF INDIA was last trading in BSE at Rs.110.15 as compared to the previous close of Rs. 118.8. The total number of shares traded during the day was 1337840 in over 12954 trades.

The stock hit an intraday high of Rs. 120 and intraday low of 105.6. The net turnover during the day was Rs. 149002859.

Source : Equity Bulls

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