UBS initiates coverage on some Indian banks, shares fall

Canara Bank

08/10/2025 05:26

** UBS initiates coverage on India's Punjab National Bank PNBK.NS and Union Bank of India UNBK.NS with "neutral" rating; PT at 120 rupees and 150 rupees, respectively

** Also initiates Canara Bank CNBK.NS with "buy", PT at 150 rupees

** Stocks down between 0.5% and 0.9% on the day

** UBS expects lower-than-industry loan growth and limited return on asset upside for UNBK

** Sees CNBK loan growth outlook steady, pressure on NIM to be relatively lower

** Expects PNBK near-term NIM under pressure, business growth steady

** YTD, UNBK up ~15%, CNBK up ~28%, PNBK up 10%

 (Reporting by Komal Salecha)

 ((Komal@thomsonreuters.com;))