Union Bank of India - 3QFY17 Result Update - Asset Quality Pressure Persists; Downgrade to HOLD - Reliance Securities

After witnessing a strong rally in last one month, we believe that the current stock price has incorporated most of the near-term positives. Further, the UBI is likely to witness higher loan impairment along with elevated credit cost, which will keep its earning profile and return ratio subdued over next 3-6 quarters. We downgrade our recommendation on the stock to HOLD from BUY with an unrevised Target Price of Rs164.

Shares of UNION BANK OF INDIA was last trading in BSE at Rs.149.8 as compared to the previous close of Rs. 153.65. The total number of shares traded during the day was 1252747 in over 10234 trades.

The stock hit an intraday high of Rs. 155.8 and intraday low of 148.25. The net turnover during the day was Rs. 191032114.

Source : Equity Bulls

Keywords