Anand Rathi rates Union Bank of India a buy with Rs 221 target
Anand Rathi keeps a Buy rating on Union Bank of India with a 12-month target of Rs 221 after a strong Q2FY27 performance.
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what happened
According to Anand Rathi's research report, Union Bank of India posted Q2FY27 results ahead of the brokerage's estimates, with return on assets at 1.4% and return on equity at 16.2%. Credit grew 19.4% year on year, led by the corporate and MSME segments, while CASA and retail term deposits rose 11.4% y/y.
Management guided for FY27 credit growth in line with the banking system, at about 18–19%. Core operating profit grew faster than the balance sheet on margin expansion and moderate cost growth. The bank built a prudent Rs10 bn ECL transition buffer against an estimated total impact of about Rs55 bn. Asset quality improved, with gross and net slippages falling to 71 and 14 bps from 82 and 37 bps in Q1FY27.
why it matters
For Indian banking investors, the report shows steady results at a large state-owned lender in the second quarter. Analysts expect credit to keep pace with the system and profitability to stay stable. The note covers one bank and does not change the broader sector picture.
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- Buy Union Bank of India; target of Rs 221: Anand Rathi — moneycontrol.com, 21 October 2026 at 05:38 UTC
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