Union Bank of India
Union Bank of India
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BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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62 extracted metrics + investor summaries across FY15–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Strengths
3- Stock is trading at 1.02 times its book value
- Company has delivered good profit growth of 46.9% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 19.9%
Weaknesses
4- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 9.03% over past five years.
- Contingent liabilities of Rs.6,97,277 Cr.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
Union Bank of India is a mid-large cap PSU bank trading at a PE of 6.9x and 1.07x book value with a market cap of Rs.1,43,397 Cr. The bank has delivered strong profit CAGR of 47% over 5 years but faces headwinds from slowing revenue growth (TTM sales growth at -1%) and massive contingent liabilities of Rs.6,97,277 Cr.
- Exceptional 5-year compounded profit growth of 47%, indicating a strong earnings recovery cycle from prior stressed asset issues
- Attractive valuation at PE of 6.9x, significantly below broader market multiples and offering margin of safety
- Trading near book value at 1.07x P/B, indicating limited downside from asset-based valuation perspective
- Healthy ROE of 16% in the last year, demonstrating improved capital efficiency and profitability
- Consistent 3-year ROE of 16% suggests the profitability improvement is sustainable rather than a one-off
- Dividend yield of 2.68% with a 19.9% payout ratio provides income to shareholders while retaining capital for growth
- Stock CAGR of 40% over 5 years reflects strong re-rating driven by improving fundamentals
- TTM profit growth of 10% shows continued earnings momentum even on a high base after years of strong recovery
- Contingent liabilities of Rs.6,97,277 Cr are nearly 5x the market cap, posing a significant tail risk if even a fraction crystallizes
- TTM sales growth has turned negative at -1%, indicating potential stagnation in core lending/interest income
- 5-year compounded sales growth of only 9% is weak for a bank operating in a growing economy
- Low interest coverage ratio raises concerns about the bank's ability to service its own borrowing obligations under stress
- 10-year ROE of only 9% reveals a long history of sub-par capital efficiency, with recent improvement yet to prove durability over a full cycle
- Potential capitalization of interest costs may be flattering reported profitability and understating true operating expenses
- 10-year stock CAGR of just 4% despite recent rally shows long-term shareholders have barely been rewarded above inflation
- As a PSU bank, exposure to government-directed lending and potential capital dilution via equity raises remains an ongoing structural risk
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Business growth lags FY27 guidance Jul 21
Credit growth at 12.50% and deposit growth at just 3.50% both trail the bank's FY27 guidance targets, signaling potential momentum concerns.
- Q1FY27 profit surges 29.5% YoY Jul 21
Standalone net profit rose 29.5% YoY to ₹5,332 crore in Q1FY27, with consolidated profit at ₹5,642 crore. NIM improved to 2.76% and GNPA declined to 2.65%.
- Foreign currency debt fundraise planned Jul 27
Board met on July 30 to consider raising funds via a Medium Term Note Programme for Foreign Currency Debt Issue, potentially diversifying funding sources.
- Active institutional investor engagement Aug 6
Bank scheduled one-to-one meetings with HDFC AMC, Millennium Capital, and Nippon Life India AMC between Aug 6-11, indicating strong institutional interest.
- ₹1,000 Cr bond call option exercised Aug 5
Union Bank exercises call option on Series XX bonds worth ₹1,000 crore, with redemption payment scheduled for September 15, 2026 and record date of August 31.
- ₹17.82 Cr block trade on NSE Jul 21
Approximately 10.07 lakh shares traded in a block deal at ₹177.00 per share, totaling ₹17.82 crore, indicating institutional-level participation.
TL;DR: Union Bank of India delivered strong Q1FY27 earnings with 29.5% profit growth, improving NIM, and declining NPAs — core fundamentals are solid. The key risk is that credit and deposit growth are lagging the bank's own FY27 targets. Active institutional engagement and planned foreign currency fundraising suggest confidence in the bank's trajectory. If business growth catches up to guidance in coming quarters, the stock's re-rating thesis remains intact.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 23,613 | 24,732 | 25,521 | 26,510 | 26,527 | 26,887 | 26,720 | 27,869 | 27,099 | 26,205 | 26,819 | 26,676 | 27,427 |
| Expenses | 7,978 | 7,962 | 8,012 | 9,365 | 9,367 | 8,686 | 8,096 | 9,673 | 8,844 | 9,056 | 7,994 | 8,744 | 8,388 |
| Financing Profit | 971 | 1,271 | 1,273 | 179 | 156 | 480 | 1,274 | -49 | 400 | -98 | 1,455 | 927 | 1,834 |
| Fin. Margin % | 4% | 5% | 5% | 1% | 1% | 2% | 5% | 0% | 1% | 0% | 5% | 3% | 7% |
| Other Income | 4,209 | 4,221 | 4,281 | 5,102 | 4,799 | 5,926 | 4,614 | 6,223 | 4,869 | 5,550 | 5,183 | 5,999 | 5,233 |
| Interest | 14,664 | 15,498 | 16,236 | 16,966 | 17,004 | 17,720 | 17,350 | 18,245 | 17,855 | 17,247 | 17,370 | 17,005 | 17,206 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PBT | 5,180 | 5,492 | 5,554 | 5,281 | 4,954 | 6,406 | 5,889 | 6,175 | 5,269 | 5,453 | 6,638 | 6,926 | 7,067 |
| Tax % | 37% | 35% | 35% | 37% | 27% | 26% | 22% | 19% | 21% | 21% | 24% | 23% | 24% |
| Net Profit | 3,272 | 3,572 | 3,625 | 3,328 | 3,642 | 4,751 | 4,623 | 5,011 | 4,428 | 4,426 | 5,073 | 5,504 | 5,642 |
| EPS in Rs | 4.79 | 4.82 | 4.89 | 4.36 | 4.77 | 6.22 | 6.06 | 6.56 | 5.8 | 5.8 | 6.65 | 7.21 | 7.39 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 32,164 | 32,316 | 32,817 | 32,952 | 34,314 | 37,479 | 69,311 | 68,230 | 81,163 | 1,00,376 | 1,06,600 | 1,06,799 | 1,07,127 |
| Expenses | 9,498 | 10,349 | 13,871 | 21,181 | 19,019 | 21,166 | 36,270 | 32,264 | 36,155 | 32,422 | 34,738 | 33,434 | 34,181 |
| Financing Profit | -973 | -1,928 | -4,830 | -11,700 | -8,601 | -9,523 | -11,071 | -4,213 | -3,024 | 4,590 | 2,946 | 3,888 | 4,118 |
| Fin. Margin % | -3% | -6% | -15% | -36% | -25% | -25% | -16% | -6% | -4% | 5% | 3% | 4% | 4% |
| Other Income | 3,957 | 3,934 | 5,430 | 5,462 | 5,042 | 5,789 | 14,307 | 13,524 | 15,915 | 17,813 | 21,562 | 21,601 | 21,965 |
| Interest | 23,640 | 23,894 | 23,776 | 23,471 | 23,896 | 25,837 | 44,112 | 40,178 | 48,033 | 63,364 | 68,916 | 69,477 | 68,828 |
| Depreciation | 225 | 249 | 241 | 368 | 374 | 417 | 908 | 745 | 745 | 896 | 1,084 | 1,204 | 0 |
| PBT | 2,759 | 1,758 | 359 | -6,607 | -3,933 | -4,151 | 2,327 | 8,566 | 12,147 | 21,507 | 23,424 | 24,284 | 26,083 |
| Tax % | 36% | 24% | -58% | -21% | -25% | -27% | -22% | 39% | 31% | 36% | 23% | 23% | — |
| Net Profit | 1,771 | 1,347 | 573 | -5,212 | -2,922 | -3,121 | 2,863 | 5,265 | 8,512 | 13,797 | 18,027 | 19,430 | 20,644 |
| EPS in Rs | 27.69 | 19.73 | 8.33 | -44.61 | -16.58 | -9.12 | 4.47 | 7.7 | 12.45 | 18.07 | 23.62 | 25.45 | 27.05 |
| Div. Payout % | 22% | 10% | 0% | 0% | 0% | 0% | 0% | 25% | 24% | 20% | 20% | 20% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 636 | 687 | 687 | 1,169 | 1,763 | 3,423 | 6,407 | 6,835 | 6,835 | 7,634 | 7,634 | 7,634 |
| Reserves | 19,263 | 22,361 | 23,406 | 24,083 | 25,073 | 30,567 | 58,331 | 64,026 | 71,969 | 89,964 | 1,06,200 | 1,25,918 |
| Borrowing | 26,628 | 30,637 | 41,226 | 45,680 | 43,276 | 52,714 | 51,922 | 51,245 | 42,737 | 26,974 | 64,992 | 77,798 |
| Deposits | 3,25,990 | 3,44,118 | 3,77,195 | 4,10,288 | 4,17,505 | 4,52,436 | 9,25,654 | 10,34,368 | 11,20,322 | 12,24,593 | 12,74,789 | 13,09,759 |
| Other Liabilities | 11,048 | 9,562 | 13,167 | 9,900 | 10,964 | 16,369 | 40,063 | 37,292 | 46,495 | 52,831 | 57,714 | 66,395 |
| Total Liabilities | 3,83,566 | 4,07,365 | 4,55,681 | 4,91,120 | 4,98,581 | 5,55,509 | 10,82,377 | 11,93,766 | 12,88,357 | 14,01,996 | 15,11,329 | 15,87,503 |
| Fixed Assets | 2,690 | 3,939 | 3,896 | 3,824 | 3,743 | 4,734 | 7,303 | 7,171 | 8,826 | 9,224 | 9,765 | 11,596 |
| CWIP | 4 | 13 | 21 | 34 | 44 | 54 | 63 | 37 | 22 | 36 | 59 | 64 |
| Investments | 85,818 | 90,573 | 1,13,441 | 1,25,485 | 1,28,391 | 1,54,251 | 3,39,059 | 3,51,839 | 3,43,727 | 3,43,953 | 3,61,903 | 3,43,623 |
| Other Assets | 2,95,053 | 3,12,840 | 3,38,322 | 3,61,777 | 3,66,402 | 3,96,470 | 7,35,952 | 8,34,718 | 9,35,782 | 10,48,783 | 11,39,602 | 12,32,220 |
| Total Assets | 3,83,566 | 4,07,365 | 4,55,681 | 4,91,120 | 4,98,581 | 5,55,509 | 10,82,377 | 11,93,766 | 12,88,357 | 14,01,996 | 15,11,329 | 15,87,503 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -3,567 | 81 | -6,624 | 6,097 | -7,778 | -7,681 | 20,527 | 36,339 | 6,056 | 19,930 | -204 | -358 |
| Investing | -318 | -9 | -280 | -315 | -297 | -377 | -601 | -558 | -2,561 | -1,394 | -19 | -71 |
| Financing | 3,168 | -2 | 10,194 | 10,792 | 1,758 | 20,144 | -18,861 | -786 | -10,654 | -11,489 | 338 | 77 |
| Net Cash Flow | -718 | 70 | 3,289 | 16,574 | -6,317 | 12,086 | 1,066 | 34,995 | -7,159 | 7,047 | 115 | -351 |
| Free Cash Flow | -3,909 | 72 | -6,911 | 5,782 | -8,076 | -8,058 | 19,926 | 35,897 | 3,673 | 18,624 | -220 | -388 |
| CFO/OP | -13 | 0 | -27 | 74 | -45 | -55 | 63 | 103 | 21 | 34 | 0 | 0 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 9% | 6% | 2% | -21% | -11% | -10% | 6% | 8% | 11% | 16% | 17% | 16% |
Documents
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Company Information
Union Bank of India is engaged in the Business of Banking Services, Government Business ,Merchant Banking, Agency Business Insurance, Mutual Funds, Wealth Management etc.[1]