Company Update : Union Bank of India by Motilal Oswal Financial Services Ltd
Modest business growth; domestic CD ratio rises 298bp QoQ
* Total business grew 7.46% YoY/fell 0.24% QoQ to INR23.79t.
* Gross advances rose 12.5% YoY/1.64% QoQ to INR10.96t (below our estimated growth 14.3% YoY/2.7% QoQ). Domestic advances grew 13.11% YoY/1.94% QoQ to INR10.6t.
* Within advances, RAM advances saw steady growth of 11.56% YoY/1.61% QoQ to INR6.08t.
* Total deposits declined by 1.8% QoQ (up 3.5% YoY) to INR12.83t (below our estimated growth of 7.8% YoY/2.3% QoQ). Domestic CASA grew by 11.72% YoY/declined 2.12% QoQ. As a result, CASA ratio was steady at 35.1% vs. 35.21% in 4QFY26.
* Union Bank reported modest credit and deposit growth, both below our estimates. Reported domestic CD ratio thus increased by 298bp QoQ to 83.38% from 80.4% in 4QFY26.
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