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.