Union Bank of India (UNBK IN) – Q4FY26 Result Update – Growth vs margin dynamic a key monitorable – Accumulate
Published on 24 Apr 2026
UNBK saw a steady quarter; while NII was 1.7% lower due to 13bps fall in reported NIM to 2.64%, core PPoP was ~17% higher owing to higher TWO recovery and lower opex. NIM fell QoQ due to the repo cut in Dec’25 and back-ended corporate growth of 9.2% QoQ. Bank had preferred profitability over growth, however, with new MD at the helm, it has slightly changed its stance to quality growth. We cut NIM/core PAT for FY27/28E by avg. 8bps/2.9%, as growth may be led by corporate and raising liabilities may get expensive in H2FY27 as LCR (incl. leeway) would be low at 116-117%. We keep multiple of 1.0x on Mar’28 ABV, and maintain TP of INR 200. Retain ‘ACCUMULATE’.
