* Bank of America-Merrill Lynch upgrades Union Bank of India
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
* BoA-ML also raises its price objective on the stock to 270
rupees from 175 rupees.
* Union Bank shares down 1.4 percent at 220.00 rupees as of 0758
GMT after surging 15.7 percent over the previous three sessions.