BofA-ML names Union Bank top govt lender
Reuters Market Eye - Bank of America-Merrill Lynch upgrades Union Bank of India (UNBK.NS) to 'buy' from 'underperform' after the state-run lender reported a surge in July-September earnings on Friday.
BoA-ML says "asset quality was far better than expected," and adds: "We believe the worst is behind us."
The investment bank calls Union Bank its top pick among government-run banks, says earnings to improve on the back of lower credit costs, while margins are showing signs of stability.
BoA-ML also raises its price objective on the stock to 270 rupees from 175 rupees.
Union Bank shares down 1 percent at 220.86 rupees as of 1:56 p.m. after surging 15.7 percent over the previous three sessions.
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Some of India's biggest companies are pouring billions of dollars into manufacturing guns, ships and tanks for the country's military, buoyed by the new government's commitment to upgrade its armed forces using domestic factories. Full Article