May 11, 2018 / 4:52 AM / 10 months ago

REFILE-BUZZ-Union Bank of India hits near 12-yr low on bigger-than-expected Q4 loss

(Corrects sixth bullet to attribute to Nomura)

** State-run Union Bank of India Ltd fall as much as 4.9 pct to 83.25 rupees, its lowest since July 24, 2006

** On Thursday, bank posted third straight quarterly net loss of 25.83 bln rupees ($384.60 mln) from a 1.08 bln rupees net profit a year ago, higher than analysts’ estimate of a 11.37 bln rupees loss

** Bank said its bad loans rose following stricter central bank rules, added 100.43 bln rupees of bad loans in March qtr; gross NPA widened to 15.73 pct vs 13.03 pct last qtr

** Believe operational challenges will continue to plague mid‐size PSU banks. Hence, expect Union Bank’s operating profitability to remain under pressure - Edelweiss

** Asset quality pressure continues to be volatile, Edelweiss analysts write, maintaining “hold” rating and TP of 110 rupees

** Nomura says given core PPOP (Pre-provision operating profit) pressures and higher stress pool still left to be recognised as well as large dilution, expect near-term pressure in the stock to continue

** Nomura cuts TP to 105 rupees from 165 rupees, retains “buy” rating

** Stock down 39.3 pct this year as of close on Thursday ($1 = 67.1600 Indian rupees)

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