Union Bank shares crack 6% after Q1 business update; details here

Union Bank of India shares fell 6 per cent after it reported a sequential decline in several key operational metrics for the June quarter

Shares of Union Bank of India slipped 6 per cent on Wednesday after the lender reported a sequential decline in several key operational metrics for the June 2025 quarter, despite year-on-year growth in its loan book.

 

The lender's stock fell as much as 5.8 per cent during the day to ₹141.5 per share, the biggest intraday fall since May 6 this year. The stock pared losses to trade 4.2 per cent lower at ₹143 apiece, compared to a 0.03 per cent decline in Nifty 50 as of 9:55 AM. 

 

Shares of the company fell for the third straight day and currently trade at 5.3 times the average 30-day trading volume, according to Bloomberg. The counter has risen 20 per cent this year, compared to a 7.9 per cent advance in the benchmark Nifty 50. Union Bank of India has a total market capitalisation of ₹1.09 trillion, according to BSE data.  Track LIVE Stock Market Updates Here

Union Bank of India Q1 business update

Total business stood at ₹22.14 lakh crore as of 30th June 2025, down 1.80 per cent from ₹22.55 lakh crore in the March quarter. Global deposits fell 2.54 per cent sequentially to ₹12.40 lakh crore, while domestic CASA (current and savings account) deposits dropped 5.43 per cent.

 

On the lending side, global gross advances declined 0.85 per cent quarter-on-quarter (Q-o-Q) to ₹9.75 lakh crore, with domestic advances also seeing a 0.83 per cent dip.

 

While retail lending remained a bright spot, with domestic retail advances rising 5.63 per cent sequentially and 25.60 per cent year-on-year (Y-o-Y), the overall weakness in deposit growth and moderation in advances weighed on sentiment.

 

Domestic RAM (Retail, Agriculture and MSME) advances rose 2.50 per cent Q-o-Q and 10.31 per cent Y-o-Y to ₹5.45 lakh crore. 

Union Bank of India's Q4 results

The state-owned lender's March quarter net profit jumped 50 per cent to ₹4,985 crore. The bank had earned a net profit of ₹3,311 crore in the same quarter previous fiscal. Total income rose to ₹33,254 crore in the quarter as compared to ₹31,058 crore in the same period a year ago.

 

The loan growth came at 8.62 per cent for FY25 as against a target of 11-13 per cent, while the net interest margin came at 2.91 per cent, within the target band guided earlier.