Union Bank Share Price Target 2025: Brokerage Says ‘Reduce’, Flags These 2 PSU Bank Stocks – Check Names

Buy Or Sell Union Bank Of India: Amid a state of constantly surmounting tensions between India and Pakistan, the Indian indices have displayed resilience and closed the week with a moderate decline.

Taking account of investor sentiments that stand divided due to the prevalent uncertainty in global cues brokerage firm Emkay recommends to sell-off the public sector banking major Union Bank Of India.

The Gurugram-headquartered firm maintains an unaltered Target Price (TP) of Rs 120. It also values the bank at “0.7x FY27E accredited business valuation (ABV)”. In the public sector banking vertical, Emkay recommends players like State Bank of India (SBI), and Indian Bank.

"For FY26, the bank guides for slower credit growth in line with gross domestic product (GDP) growth. This, coupled with the swift policy rate cycle, could stress the bank’s margin in the near term. However, we expect the bank to still manage 0.9-1.1% return on assets (RoA), aided by better treasury gains, NPA recovery, and lower LLP, " according to an Emkay report.

"We retain REDUCE on the stock with an unchanged TP of Rs120, valuing the bank at 0.7xFY27E ABV. Our preferred picks among PSBs are SBI and Indian Bank," it said.

"The management expects fresh slippages to moderate from here on, and asset quality to remain healthy," it added.

Union Bank of India's Q4 Results For FY25

State lender Union Bank of India reported a net profit rise of 51 per cent year-over-year (YoY) to Rs 4,985 crore in the fourth quarter of FY25 on the backs of increase in interest income, improved asset quality, and strong operational performance. Meanwhile, the public sector bank has voiced concerns linked to pressure on net interest margins (NIMs), as a result of rate cuts by the central bank   basis the ever-changing macro-economic landscape.

The bank's total income for Q4 was reported at Rs 33,254.31 crore, a 7.07 per cent increase compared to the same quarter the previous year. Net interest income (NII) increased to Rs 9,514 crore, up 2.96 per cent sequentially, supported by strong loan growth and improved yield management. However, the net interest margin (NIM) for the quarter slightly decreased to 2.87 per cent from 2.91 per cent in Q3, reflecting pressure on margins due to rising cost of funds.
 

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