Union Bank of India Limited (UNIONBANK) AI Stock Analysis

• Market Cap: ₹1.34T
• Dividend Yield: 3.15%
• Average Volume (3M): 506.26K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 1.35
• Revenue Growth: 3.86%
• EPS Growth: 19.14%
• Country: US
• Employees: 75,866
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 6.59
• Shares Outstanding: 7,633,605,500
• 10 Day Avg. Volume: 279,043
• 30 Day Avg. Volume: 506,265
• PEG Ratio: 0.21
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 5.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹180.00
• Price Target Upside: 10.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: ₹208.00 ▲(28.08% Upside)

Score is driven primarily by strong financial performance (revenue/profitability and robust cash generation) and attractive valuation (low P/E and solid dividend yield). Technicals are positive but somewhat overheated (high RSI/Stoch), moderating the overall rating.

Positive Factors

Operational Profitability

Robust gross and net margins indicate sustainable operating efficiency and pricing power across retail and corporate lending. Durable profitability supports internal capital accumulation, funds reinvestment into branch/digital channels, and cushions credit cost cycles, underpinning long-term franchise value.

Cash Flow Generation

Consistent free cash flow growth shows the bank converts earnings into liquidity efficiently, enabling sustained lending capacity, dividend funding, and buffer for provisioning. Strong cash conversion reduces reliance on external funding and supports strategic investments over multiple quarters.

Capital Position & ROE

A healthy equity ratio and improving ROE reflect stronger capital efficiency and shareholder value creation while preserving regulatory cushions. Adequate capitalization supports credit growth, absorption of shocks, and lower probability of dilutive capital raises over the medium term.

Negative Factors

Total Debt Levels

Elevated total debt, even if currently manageable, increases sensitivity to funding cost spikes and can pressure capital ratios under stress. Persistent higher leverage would constrain strategic flexibility, increase regulatory scrutiny, and could necessitate higher provisioning or capital actions in adverse cycles.

Modest Revenue Growth Rate

Core revenue growth around 3.9% is modest for a large retail-commercial bank and may lag industry peers or nominal economic growth. Slower top-line expansion limits scope for margin expansion and balance sheet scaling, making future return improvement more reliant on efficiency gains or lower credit costs.

Earnings Volatility Exposure

A beta above 1 indicates higher sensitivity to market and macroeconomic cycles; for a bank this often translates into earnings volatility from interest rate moves and credit cycles. Greater volatility can complicate planning, capital management, and investor expectations over medium-term horizons.

Union Bank of India Limited Business Overview & Revenue Model

Company Description

Union Bank of India provides various banking products and services. It operates through four segments: Treasury Operations, Retail Banking Operations, Corporate and Wholesale Banking, and Other Banking Operations. The company offers savings and current accounts; term and recurring deposits; and demat and online trading accounts. It also provides retail loans, including home, vehicle, education, and personal loans; loans against the property; and loans for pensioners, as well as products and loans for micro, small, and medium enterprises. In addition, the company offers mutual funds, life, non-life, health, and general insurance products, and tax saving deposits; government saving schemes, tax collection services, pension products, and departmentalized ministries accounts; short term, long term, and other credit for agricultural/SSI/tertiary sectors; and safe deposit locker and cheque collection services. Further, it provides corporate loans comprising Covid emergency line of credit, trade finance, working capital, lines of credit, project financing, and channel finance; debt structuring/restructuring, loan syndication, structured finance, mergers and acquisition advisory, and private equity services; cash management, ECGC cover, and foreign exchange services, as well as derivatives; export and import finance services; NRI banking services; and treasury and other products, and remittance services. Additionally, the company offers app, internet, self-service, ATM, and SMS banking services; point of sale terminal and immediate payment services; and combo, debit, credit, gift, prepaid, and payroll cards. As of March 31, 2022, it operated 8,870 branches in India; 3 overseas branches at Hong Kong, Dubai, and Sydney; 1 representative office in Abu Dhabi; and 11,232 ATMs. The company was incorporated in 1919 and is headquartered in Mumbai, India.

How the Company Makes Money

Union Bank of India primarily generates revenue through the interest income earned from its lending activities. The bank lends money to individuals and businesses at a higher interest rate than the rates it pays on customer deposits, creating a spread that contributes significantly to its profits. Additionally, it earns income from fees and commissions associated with various banking services, such as account maintenance charges, transaction fees, and service charges for loan processing. The bank also engages in treasury operations, which involve managing its assets and liabilities, including investments in government securities and foreign exchange, further contributing to its income. Union Bank has established partnerships with various financial institutions and fintech companies to enhance its product offerings and reach, which can also have a positive impact on its revenue streams.

Union Bank of India Limited Financial Statement Overview

Summary

Strong overall fundamentals: income statement shows strong revenue growth and robust profitability; cash flow indicates solid free cash flow growth and efficient cash conversion. Balance sheet is healthy with improved ROE and manageable leverage, though debt levels warrant monitoring.

Income Statement

Union Bank of India has shown a strong revenue growth trajectory, with a significant increase in total revenue from 2024 to 2025. The net profit margin and gross profit margin are robust, indicative of efficient cost management and profitability. Despite fluctuations in EBIT and EBITDA margins over the years, the latest metrics indicate solid operational profitability.

Balance Sheet

The bank maintains a healthy equity ratio, suggesting a stable capital structure with adequate assets backing liabilities. The debt-to-equity ratio is moderate, indicating manageable leverage levels. Return on equity has improved, reflecting enhanced shareholder value creation. However, the total debt level, while controlled, requires continuous monitoring.

Cash Flow

The cash flow analysis reveals strong free cash flow growth, reinforcing Union Bank's ability to generate cash from operations. The operating cash flow to net income and free cash flow to net income ratios are favorable, indicating efficient cash conversion. Despite previous years' fluctuations, the current cash flow situation is solid.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.31T	1.30T	1.19T	951.64B	817.54B	831.66B
Gross Profit	591.31B	593.40B	551.78B	471.32B	415.76B	390.53B
EBITDA	238.44B	246.14B	224.92B	129.72B	60.03B	36.78B
Net Income	188.13B	180.27B	137.97B	85.12B	52.65B	28.63B
Balance Sheet
Total Assets	14.98T	15.11T	14.02T	12.88T	11.94T	10.82T
Cash, Cash Equivalents and Short-Term Investments	1.40T	1.32T	1.20T	1.13T	1.20T	847.63B
Total Debt	678.04B	274.90B	269.74B	621.40B	543.40B	558.49B
Total Liabilities	13.76T	13.97T	13.04T	12.10T	11.23T	10.18T
Stockholders Equity	1.22T	1.14T	975.98B	788.04B	708.61B	647.38B
Cash Flow
Free Cash Flow	0.00	158.10B	295.94B	30.46B	355.89B	198.08B
Operating Cash Flow	0.00	174.79B	312.42B	61.11B	363.39B	171.72B
Investing Cash Flow	0.00	-18.91B	-13.94B	-25.61B	-5.58B	-6.01B
Financing Cash Flow	0.00	-35.50B	-114.89B	-106.54B	-7.86B	363.47B

Union Bank of India Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 162.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 162.4 is below the 20-day moving average (MA) of 164.95, above the 50-day MA of 157.52, and above the 200-day MA of 141.21, indicating a bullish trend. The MACD of 6.07 indicates Negative momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 62.04 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNIONBANK	82 Outperform	₹1.34T	6.96	―	3.15%	3.86%	19.14%
BANKBARODA	81 Outperform	₹1.56T	8.04	―	2.86%	4.40%	-3.84%
IDBI	76 Outperform	₹1.03T	11.38	―	2.08%	11.31%	37.17%
CANBK	75 Outperform	₹1.39T	7.13	―	2.66%	8.89%	19.79%
PNB	75 Outperform	₹1.44T	8.01	―	2.40%	12.10%	12.93%
BANKINDIA	74 Outperform	₹726.83B	7.30	―	2.87%	14.34%	20.97%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Union Bank of India Limited Corporate Events

Union Bank of India Announces Leadership Change

Union Bank of India announced the cessation of Mr. Srinivasan Varadarajan as the Non-Executive Chairman and Part-Time Non-Official Director, effective November 7, 2025. This change marks the end of Mr. Varadarajan’s tenure, which could impact the bank’s governance structure and strategic direction as it seeks to appoint a new leader to guide its future operations.

Union Bank of India Releases Post-Earnings Call Transcript for Q3 2025

Union Bank of India has released the transcript of its post-earnings call for the quarter ending September 30, 2025. The call, held on October 30, 2025, discussed the bank’s reviewed unaudited financial results, both standalone and consolidated. This disclosure is part of the bank’s compliance with SEBI regulations, ensuring transparency and informed decision-making for its stakeholders.