ScoreWhy is Union Bank of India ?
1
Strong lending practices with low Gross NPA ratio of 2.65%
2
The Bank has a high Capital Adequacy Ratio of 15.01% signifying high buffers against its risk based assets
3
Healthy long term growth as Net profit has grown by an annual rate of 39.61%
4
The company has declared Positive results for the last 3 consecutive quarters
- GROSS NPA(Q) Lowest at 2.65%
- DPS(Y) Highest at Rs 5.00
- PAT(Q) Highest at Rs 5,332.30 cr.
5
With ROA of 1.3, it has a Very Attractive valuation with a 1 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 30.65%, its profits have risen by 8.1% ; the PEG ratio of the company is 0.8
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Union Bank (I) should be less than 10%
- Overall Portfolio exposure to Public Sector Bank should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Public Sector Bank)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Union Bank (I) for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Union Bank (I)
30.65%
0.92
33.30%
Sensex
-3.81%
-0.28
13.58%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
8.60%
Net Profit Growth (5y)
39.61%
Advance to Deposit
73.61%
Capital Adequacy Ratio (Tier 1)
15.01%
Gross NPA (latest)
2.65%
Gross NPA (avg)
5.65%
Coverage Ratio (avg)
79.26%
Cost to Income (avg)
46.48%
Net Interest Margin (avg)
2.83%
Operating Profit to Assets (avg)
3.99%
ROA (avg)
0.96%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
6
Price to Book Value
0.97
PEG Ratio
0.81
Dividend Yield
2.92%
ROE (Latest)
14.82%
ROA (Latest)
1.29%
Net NPA to Book Value
3.73
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bullish
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend20What is working for the Company
GROSS NPA(Q)
Lowest at 2.65%
DPS(Y)
Highest at Rs 5.00
PAT(Q)
Highest at Rs 5,332.30 cr.
NET NPA(Q)
Lowest at 0.47%
NII(Q)
Highest at Rs 10,037.23 cr
CREDIT DEPOSIT RATIO(HY)
Highest at 83.55%
INTEREST EARNED(Q)
Highest at Rs 27,203.19 cr
PBDIT(Q)
Highest at Rs 3,399.57 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 12.50%
PBT LESS OI(Q)
Highest at Rs 2,420.15 cr.
EPS(Q)
Highest at Rs 6.99
-4What is not working for the Company
OPERATING CF(Y)
Lowest at Rs -394.26 Cr
NON-OPERATING INCOME(Q)
is 65.54 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Union Bank (I)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 2,420.15 cr has Grown at 104.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1,186.57 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Gross NPA - Quarterly
Lowest at 2.65% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Gross NPA (%)
Profit After Tax (PAT) - Quarterly
Highest at Rs 5,332.30 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net NPA - Quarterly
Lowest at 0.47% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Net NPA (%)
Net Interest Income (Quarterly)
Highest at Rs 10,037.23 cr
in the last five quartersMOJO Watch
The bank's income from core business is increasing
Net Interest Income (Rs Cr)
Dividend per Share (DPS) - Annually
Highest at Rs 5.00 and Grown
each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (Rs)
Interest Earned - Quarterly
Highest at Rs 27,203.19 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Interest Earned (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 3,399.57 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 12.50%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 2,420.15 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 6.99
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Credit Deposit Ratio - Half Yearly
Highest at 83.55%
in the last four periodsMOJO Watch
Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets
Credit Deposit Ratio (%)
CAR - Quarterly
Highest at 18.46%
in the last five quartersMOJO Watch
The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.
CAR (%)
Here's what is not working for Union Bank (I)
Operating Cash Flow - Annually
Lowest at Rs -394.26 Cr and Fallen
each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
Non Operating Income - Quarterly
is 65.54 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
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