Union Bank Shares Poised for ₹210: 5 Key Factors Driving Growth

• Union Bank of India shares opened 2% higher on Friday, January 16, extending a five-session gain streak, though later saw a slight dip.
• The bank reported improved Net Interest Margins (NIMs) by 9 basis points and a significant decline in credit costs by 13 basis points, leading to a 19 basis point expansion in Return on Assets (ROA).
• Asset quality showed improvement with lower fresh slippages and reduced write-offs; the slippage ratio declined to 0.79%.
• The CASA ratio sharply improved by 140 basis points to 33.96%, despite a marginal 1% quarter-on-quarter fall in deposits.
• Investec maintained a 'Buy' rating, raising the price target to ₹210 from ₹195, citing NIM expansion, eased credit costs, and strong loan book growth.

Why It Matters: Union Bank of India shows strong financial health and growth potential, with analysts projecting shares to reach ₹210.