Union Bank of India’s shares dropped by as much as 6% on Monday, January 6, to ₹116.48 after the bank released its business update for Q3 FY2024-25. The state-run lender reported lackluster growth in key metrics, marking one of the weakest performances among its peers.
Key Highlights from Q3 FY25 Business Update:
- Total Business (Global): Increased 4.7% YoY to ₹21.65 lakh crore but declined 0.24% sequentially.
- Total Deposits (Global): Grew 3.76% YoY to ₹12.16 lakh crore but fell 2.04% QoQ.
- Domestic Deposits: Reported a 2.45% YoY growth to ₹11.82 lakh crore but dropped 2.36% QoQ.
- Global Gross Advances: Rose 5.93% YoY and 2.18% QoQ to ₹9.49 lakh crore.
- Domestic Advances: Registered a 5.33% YoY increase to ₹9.13 lakh crore, up 2.06% QoQ.
- Domestic CASA Deposits: Declined 0.44% YoY and 0.23% QoQ to ₹3.95 lakh crore.
Market Reaction:
Investors responded negatively to the subdued growth figures, particularly in deposits and CASA (Current Account Savings Account) balances, which are critical indicators of a bank’s liquidity and operational efficiency. Union Bank’s sequential decline in deposits and a slower pace of growth in advances compared to its peers have raised concerns over its performance.
The stock is currently trading at ₹116.48, marking a 6% decline from the previous close.
TOPICS:
Union Bank of India