Shares of Union Bank of India came under pressure in intraday trade on April 29 after an exclusive report indicated that a whistleblower has raised concerns over the bank’s deposit reporting practices. The stock declined around 2.5% to ₹166.28 on the NSE, compared to its previous close of ₹170.48.
According to the report, a whistleblower letter sent to the Reserve Bank of India (RBI) has alleged that the bank engaged in quarter-end “window dressing” of deposits to inflate its current account savings account (CASA) figures. The complaint has raised broader concerns around how banks report deposit metrics, particularly at reporting cut-offs.
CASA deposits are a key indicator of a bank’s funding quality, as they represent low-cost deposits that help support margins. Any artificial inflation of these figures, if proven, could distort the bank’s reported financial health and operational efficiency.
Market participants reacted cautiously to the development, with the stock witnessing selling pressure amid concerns over governance and reporting transparency. The broader banking space is also likely to remain in focus as the issue could prompt regulatory scrutiny into industry-wide practices related to quarter-end reporting.
As of the latest trading session, Union Bank opened at ₹170.46, touched a high of ₹172.23, and slipped to an intraday low of ₹164.28. Trading volumes remained elevated, indicating heightened investor activity following the report.
There has been no official response from Union Bank or regulatory authorities on the matter at the time of writing.
The development comes at a time when regulators have been increasingly focused on improving transparency, governance standards, and disclosure practices across the banking sector. Any further clarity from the RBI or the bank itself will be closely tracked by investors going forward.