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Union Bank of India Limited (UNIONBANK) AI Stock Analysis

IN:UNIONBANK

Union Bank of India Limited

(NSE:UNIONBANK)

Select Model
Rating:64.8Neutral
Price Target:INR 185.00▼(-0.54% Downside)
Action:downgraded
Date:10/19/26

The score is mainly held back by financial statement risk signals—especially the sharp 2026 cash-flow deterioration and higher leverage—despite strong multi-year profitability and a positive earnings-call tone on margins, asset quality, and capital. Valuation is a clear positive (low P/E and decent yield), while technical indicators remain weak and weigh on the near-term setup.

Positive Factors
Profitability and marginsStrong profit growth alongside improved NIM, ROA, and ROE indicates that the bank is converting balance-sheet scale into better earnings. If margins and returns remain resilient, this provides greater capacity to build capital, invest in operations, and support sustained growth.
Negative Factors
Cash-flow deteriorationThe sharp decline in operating and free cash flow weakens confidence in near-term cash conversion despite continued profitability. Free cash flow still covered part of net income, but the deterioration increases dependence on funding and makes internal capital generation more volatile.

Union Bank of India Limited (UNIONBANK) vs. iShares MSCI India ETF (INDA)

-20%-10%0%10%20%30%40%IN:UNIONBANK+25.89%INDA-11.66%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
INR 1.42T
Dividend Yield
2.70%
Average Volume (3M)
579.44K
Price to Earnings (P/E)
6.5
Beta (1Y)
1.45
Revenue Growth
0.31%
EPS Growth
19.01%
Country
India
Employees
73,885
Sector
General
Sector Strength
55
Industry
Banks - Regional

Union Bank of India Limited Business Overview & Revenue Model

Company Description

Union Bank of India provides a comprehensive array of banking and financial products and services, structured across four main operational segments: Treasury Operations, Retail Banking Operations, Corporate and Wholesale Banking, and Other Banking Op...

How the Company Makes Money

Union Bank of India primarily earns money through a combination of interest income and fee-based (non-interest) income. (1) Net interest income: The bank raises funds mainly by accepting customer deposits (savings/current accounts and term deposits)...

Union Bank of India Limited Earnings Call Summary

Earnings Call Date:Oct 18, 2026(Q2-2027)|% Change Since:8.14%|Next Earnings Date:Jan 14, 2027
Earnings Call SentimentPositive

The call was predominantly positive, supported by 30.31% year-over-year net profit growth, improving margins, stronger asset quality, robust capital and liquidity, healthy credit growth, improving deposit mix, and extensive transformation and lending initiatives. The main concerns were the sharp decline in treasury income, slower deposit growth relative to advances, the pending ECL transition and ongoing provisioning assessment, weaker other income, moderated gold loan growth, and external macroeconomic and drought-related uncertainties.

Positive Updates

Strong Quarterly Profitability
Q2 net profit was INR 5,537 crore, registering 30.31% year-over-year growth. Operating profit was INR 8,108 crore, reflecting 18.99% year-over-year growth.

Negative Updates

External Macroeconomic Headwinds
Management said the first half of FY 2026/2027 was affected by the West Asia conflict, El Niño effects, and AI-led disruptions, with impacts through oil prices, inflation, trade linkages, logistics, capital flows, and market movements.

Company Guidance

Management said advances will move “as per system credit growth,” with domestic CD ratio considered comfortable “somewhere between 80% to 84%, 85%.” Robotic process automation is “almost close to 100” processes currently, expected to reach “nearer around 200” by March 2027 and “between 400 to 500 processes” by 2028; full-year TW write-off is targeted at “around INR 3,000 crore,” while total recovery is targeted at “more than slippages” and “INR 10,000 crore to INR 12,000 crore,” with written-off recovery in the same range. The estimated ECL transition impact is “INR 5,500 crore,” with “INR 1,000 crore” already provided and the estimate subject to “plus minus maybe INR 100 crore, INR 200 crore here and there”; ongoing impact is expected to be manageable, although actual figures are “still to be worked out.” Management said the rate hike cycle will have a “positive constructive role” in NIM and ROA, and the bank would “defend and keep on improving” its reported ratios. The large-corporate sanctioned pipeline is “more than 1 lakh crore,” likely to be disbursed in “next one and a half year,” with approximately “64,000 crore” to “68 thousand crore” of sanction proposals in the pipeline.

Union Bank of India Limited Financial Statement Overview

Summary

Strong multi-year profitability improvement and healthy recent ROE, but the latest period shows materially weaker operating/free cash flow and a jump in debt-to-equity, increasing funding and cash-conversion risk. Revenue growth turning slightly negative in 2026 is an added watch item.

Income Statement

74Positive

Balance Sheet

63Positive

Cash Flow

45Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.28T1.26T1.30T1.19T951.64B817.54B
Gross Profit564.80B544.90B593.40B551.78B471.32B415.76B
EBITDA242.84B254.88B246.14B224.92B129.72B60.03B
Net Income194.30B194.30B180.27B137.97B85.12B52.65B
Balance Sheet
Total Assets15.88T15.88T15.11T14.02T12.88T11.94T
Cash, Cash Equivalents and Short-Term Investments960.43B960.43B1.32T1.20T1.13T1.20T
Total Debt777.98B777.98B649.92B269.74B621.40B370.36B
Total Liabilities14.54T14.54T13.97T13.04T12.10T11.23T
Stockholders Equity1.33T1.33T1.14T975.98B788.04B708.61B
Cash Flow
Free Cash Flow232.24B39.75B158.10B295.94B30.46B355.89B
Operating Cash Flow240.66B71.99B174.79B312.42B61.11B363.39B
Investing Cash Flow-46.11B-864.93B-18.91B-13.94B-25.61B-5.58B
Financing Cash Flow-375.89B441.49B-35.50B-114.89B-106.54B-7.86B

Union Bank of India Limited Technical Analysis

Technical Analysis SentimentPositive
Last Price186.00

Price Trends

50DMA179.16Positive
100DMA175.19Positive
200DMA173.18Positive

Market Momentum

MACD2.14Negative
RSI62.06Neutral
STOCH84.76Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UNIONBANK, the sentiment is Positive. The current price of 186.00 is above the 20-day moving average (MA) of 176.25, above the 50-day MA of 179.16, and above the 200-day MA of 173.18, indicating a bullish trend. The MACD of 2.14 indicates Negative momentum. The RSI at 62.06 is Neutral, neither overbought nor oversold. The STOCH value of 84.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:UNIONBANK.

Union Bank of India Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

IN:UNIONBANK against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
IN:SBININ:SBIN83OutperformINR 8.87T10.30―1.80%6.56%4.93%
IN:PNBIN:PNB80OutperformINR 1.41T6.19―2.45%2.89%34.19%
IN:INDIANBIN:INDIANB72OutperformINR 1.17T8.82―2.11%12.44%17.22%
IN:BANKBARODAIN:BANKBARODA71OutperformINR 1.23T6.79―3.56%8.17%2.75%
IN:CANBKIN:CANBK68NeutralINR 1.07T5.23―3.55%-6.75%6.41%
IN:UNIONBANKIN:UNIONBANK65NeutralINR 1.41T6.45―2.70%0.31%19.01%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%20%IN:UNIONBANKIN:BANKBARODAIN:CANBKIN:INDIANBIN:PNBIN:SBINDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
IN:UNIONBANK and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
IN:UNIONBANKUnion Bank of India Limited185.2038.0925.89%
IN:BANKBARODABank of Baroda238.50-40.57-14.54%
IN:CANBKCanara Bank118.35-16.79-12.43%
IN:INDIANBIndian Bank865.0011.231.31%
IN:PNBPunjab National Bank122.502.732.28%
IN:SBINState Bank of India961.0020.902.22%

Union Bank of India Limited Corporate Events

Union Bank of India posts strong Q2 FY2027 profit, boosts RAM-led growth and asset quality

Oct 19, 2026

Union Bank of India reported a robust financial performance for the quarter ended September 30, 2026, posting net profit of ₹5,537 crore and interest income of ₹28,158 crore on an unaudited standalone and consolidated basis. The bank&#821...

Union Bank of India Publishes Q2 FY2027 Unaudited Financial Results Presentation

Oct 19, 2026

Union Bank of India Limited, a major Indian public sector bank based in Mumbai, offers comprehensive banking and financial services across retail and corporate segments and is listed on BSE and NSE. The bank emphasizes regulatory compliance and inves...

Union Bank of India Secures AAA Reaffirmation on Tier II Bonds as AT1 Ratings Withdrawn Post Redemption

Sep 18, 2026

Union Bank of India has announced that Brickwork Ratings has reaffirmed its long-term rating of BWR AAA with a Stable outlook on the bank’s Rs 1,000 crore Tier II bonds under Basel III, reflecting a strong operational credit profile, healthy ca...

Union Bank of India Raises US$600 Million in Dual-Tranche DIFC Bond Issue

Aug 24, 2026

Union Bank of India has disclosed the issuance of USD-denominated senior unsecured dual-tranche notes via its DIFC Branch in Dubai, targeting maturities in 2029 and 2031. The notes are expected to carry BBB/BBB- ratings from S&P Global and Fitch...

Union Bank of India Posts Earnings Call Transcript for June Quarter

Jul 21, 2026

Union Bank of India has released the transcript of its post-earnings conference call held on July 15, 2026, discussing the reviewed unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The transcript has been f...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 19, 2026