Union Bank of India slips 7% after reporting Q3 update; here's why

In its Q3 update released, Union Bank of India announced a 2.04 per cent decline in Q-o-Q total deposits (global) to Rs 12,16,562 crore as compared to Rs 12,41,947 crore in the September quarter

Union Bank of India shares slipped 7.2 per cent in Monday's trade on BSE, logging an intraday low at Rs 114.8 per share. The selling pressure in the stock came after the company showed weak quarter-on-quarter (Q-o-Q) Q3 performance. 

 

Around 11:38 AM, Union Bank of India share price was down 6.45 per cent at Rs 116.05 per share on BSE. In comparison, the BSE Sensex was down 0.89 per cent at 78,517.13. The market capitalisation of the company stood at Rs 88,587.99 crore. The 52-week high of the stock stood at Rs 172.45 per share and the 52-week low of the stock stood at Rs 106.55 per share.

 

In its Q3 update released on Saturday, Union Bank of India announced a 2.04 per cent decline in Q-o-Q total deposits (global) to Rs 12,16,562 crore as compared to Rs 12,41,947 crore in the September quarter. Its domestic deposits also slipped 2.36 per cent to Rs 11,82,623 crore as compared to Rs 12,11,178 crore in the September quarter. 

 

However, global gross advances increased 2.18 per cent Q-o-Q and 5.93 per cent year-on-year (Y-o-Y) to Rs 9,49,070 crore as compared to Rs 9,28,832 crore and Rs 8,95,974 crore respectively. 

 

Besides, the total advances of the bank crossed Rs 9.49 trillion which grew by 5.93 per cent Y-o-Y as of December 31, 2024. Its total domestic retail, agriculture, and MSME (RAM) advances stood at Rs 5.17 trillion which grew by 6.10  per cent Y-o-Y in the December quarter and bank's total domestic retail advances crossed Rs 2.01 trillion which grew by 16.35 per cent Y-o-Y. 

 

Union Bank of India, established in 1919 and headquartered in Mumbai, is one of India’s largest public sector banks. The bank offers a wide range of banking services, including retail, corporate, and NRI banking, along with digital solutions like mobile and online banking. In 2020, Union Bank merged with Andhra Bank and Corporation Bank, making it one of the largest banking entities in the country. It has been focusing on enhancing its digital platforms and improving asset quality by reducing non-performing assets (NPAs). 

 

In the past one year, Union Bank of India shares have lost 0.16 per cent against Sensex's rise of 10 per cent.