UNIONBANK

Improving Asset Quality: For FY 2025, gross NPA and net NPA ratios have seen visible improvement. Diversified Business Growth: The increase in retail + MSME advances and growth in deposit base suggest a stable retail‐banking franchise, less dependent on risky corporate loan book. Resilient Profitability & Balanced Income Mix: Besides interest income, non-interest income has shown growth. This helps in cushioning interest-rate or margin pressure. Valuation Appears Reasonable / Discounted: Given the book value backing and recent results, the currently observed share-price (as compared to potential targets by analysts) may offer some upside, especially if macro continues to support credit growth. Large Scale & PSU Backing: As a major public-sector bank, the balance-sheet stability and regulatory oversight potentially lower structural risk compared to smaller or private lenders.