Prabhudas Lilladher Recommends 'BUY' on Union Bank of India; Sets Rs 200 Target

• Union Bank of India (UNBK) reported a strong quarter, exceeding core PAT expectations by 32% due to improved Net Interest Margin (NIM) and asset quality.
• Reported NIM increased by 9bps QoQ to 2.76%, driven by CRR cut and better liquidity management.
• Gross slippage ratio was lower at 84bps, with healthy recovery leading to negative net slippage and reduced provisions.
• The bank anticipates an ECL transition impact of Rs42-43bn but expects no material effect due to sufficient PCR buffer and a strong corporate book rating.
• Prabhudas Lilladher upgraded the target price to Rs200 from Rs160, rolling forward to Mar’27 ABV, and maintained a 'BUY' rating.

Why It Matters: Prabhudas Lilladher recommends buying Union Bank of India, citing strong Q3 performance and a raised target price of Rs 200.