>Union Bank of India (JP MORGAN)

Union Bank reported strong 3Q09 numbers with net profit growing 84%
yoy almost 30% higher than street estimates. The stock reacted up 3%,
closed the day down 2% yet outperforming the banks Nifty index.
While deposits growth picked up to 31% loan growth remained stable at
25% leading to 50% increase in net interest income. Margins continued
to expand to 2.97% year to date and the bank looks to further enhance its
full year margins to at least 3%; However, in the near term given recent
PLR cuts, that appears difficult, in our view.

To see full report: Union Bank of India