Union Bank | Business Upturn

Union Bank shares drop 4% as loan growth hits 4-quarter low

Aman Shukla — Wed, 09 Jul 2025 03:51:27 +0000

Union Bank of India shares declined 4% after the lender reported its weakest quarterly loan growth in the past four quarters. As of 9:20 AM, the shares were trading 4.19% lower at Rs 143.95.

For the quarter ended June 2025, the bank’s global gross advances came in at ₹9.12 lakh crore, up 6.83% year-on-year but down 0.85% sequentially. This marks a slowdown in credit momentum compared to recent trends.

Total business grew 5% YoY to ₹21.09 lakh crore but dipped 1.8% sequentially. Deposits rose 3.63% YoY to ₹11.97 lakh crore, yet were down 2.54% on a quarterly basis. Domestic deposits followed a similar trend—up 3.62% YoY but down sequentially.

Domestic CASA deposits grew a modest 0.92% YoY to ₹3.99 lakh crore. Domestic advances stood at ₹8.79 lakh crore, showing a 6.75% YoY increase but falling 0.83% QoQ. The sluggish loan book expansion appears to have weighed on investor sentiment.

On a positive note, domestic RAM (Retail, Agriculture, MSME) advances rose 10.31% YoY and 2.5% sequentially to ₹4.94 lakh crore, with domestic retail advances jumping 25.6% YoY to ₹1.82 lakh crore.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

Top stocks in focus on July 9: JSW Steel, BEL, Ola Electric, Tata Technologies, Union Bank and more

Aman Shukla — Wed, 09 Jul 2025 02:42:39 +0000

The Indian stock market closed slightly higher on Tuesday. The NSE Nifty 50 gained 61.20 points to end at 25,522.50, while the BSE Sensex rose 270.01 points to close at 83,712.51. Here’s a look at some of the key stocks in focus for July 9:

Stocks to Watch on July 9:

JSW Steel’s Q1 crude steel production rose 14% YoY; India operations up 15%.
BEL signed a contract with the Indian Navy for the NMDA project.
Signature Global reported a 63% QoQ rise in sales value; area sold increased 19%.
Lupin signed a licensing and supply deal with Zentiva for biosimilar Certolizumab Pegol.
Tata Technologies partnered with Emerson for next-gen mobility testing solutions.
Sun TV in focus as reports suggest Maran brothers may have settled their dispute.
Ola Electric announced mass rollout of MoveOS 5, its biggest software upgrade.
CAMS launched CAMSPay, a new payment gateway system.
Epack Durable started washing machine production at its Sri City plant.
Supreme Industries received ₹54 crore LoA from BPCL for LPG cylinder supply.
Bajel Projects to expand galvanization capacity to 1.1 lakh mtpa from 40,500 mtpa.
Petronet LNG got interim protection from Delhi HC against PNGRB 2025 rules.
Tata Steel’s Q1 sales volumes fell 3.8% YoY; production down 0.2%.
Union Bank’s gross advances declined 0.8% QoQ, marking weakest loan growth in 4 quarters.
Gujarat Pipavav Port’s Q1 container volumes flat YoY at 1.64 lakh TEUs; dry bulk volume also flat.

Union Bank shares surge 3% as Q4 net profit jumps 50.6% YoY to Rs 4,985 crore

Aman Shukla — Fri, 09 May 2025 03:59:30 +0000

Union Bank of India shares surged 3% in morning trade after the lender reported robust financial performance for the fourth quarter of FY25. As of 9:27 AM, the shares were trading 3.58% higher at Rs 119.72.

The bank posted a significant 50.6% year-on-year jump in standalone net profit, reaching ₹4,985 crore compared to ₹3,310 crore in the same quarter last year. This impressive growth was supported by a healthy rise in operating profit, which stood at ₹7,700 crore, up 17.9% from ₹6,533 crore a year ago.

Despite a modest 1% increase in Net Interest Income to ₹9,514 crore from ₹9,437 crore, the improvement in asset quality was a key highlight. Gross Non-Performing Assets (NPA) declined to 3.6% from 3.85% quarter-on-quarter, while Net NPA improved to 0.63% from 0.82%, reflecting stronger risk management and recovery efforts. Provisions came in at ₹1,544 crore, slightly lower than the previous quarter’s ₹1,599 crore but up 22.6% year-on-year from ₹1,260 crore, indicating prudent provisioning amid credit growth.

Union Bank of India shares rise over 3% following strong Q3 FY25 performance

Aditya Bhagchandani — Tue, 28 Jan 2025 04:24:04 +0000

Union Bank of India posted an impressive financial performance for Q3 FY25, with net profit surging 28.24% YoY to ₹3,590 crore, compared to ₹2,799 crore in the same quarter last year. This growth was attributed to higher net interest income (NII) and improved asset quality.

The bank’s NII grew marginally by 0.79% YoY to ₹9,240 crore from ₹9,168 crore, while non-interest income saw a robust increase of 17.02% YoY, reaching ₹4,417 crore.

Asset quality also improved significantly, with Gross Non-Performing Assets (GNPA) declining by 15.51% YoY to ₹36,554 crore, and Net NPA reducing by 19.07% YoY to ₹7,568 crore. GNPA as a percentage of total advances improved to 3.85%, and Net NPA stood at 0.82%.

Key operational highlights included a 5.94% YoY growth in global advances to ₹9,49,164 crore and a 3.76% increase in deposits to ₹12,16,562 crore. Operating profit grew by 2.94% YoY to ₹7,492 crore, with Return on Assets (ROA) improving by 23 bps YoY to 1.30% and Return on Equity (ROE) rising by 50 bps to 17.75%.

As of 9:50 AM, Union Bank of India shares were trading 3.18% higher at ₹108.95 on the NSE, reflecting positive investor sentiment following the strong quarterly results.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

PSU Banks Tumble Today: Bank of Baroda down 4.9%, Bank of India down 3.5%, Union Bank down 6.7%

Aditya Bhagchandani — Mon, 06 Jan 2025 06:52:25 +0000

Public sector banks witnessed a sharp sell-off in the markets today, with major PSU banking stocks plunging after four consecutive days of gains. Investors turned cautious following news of the first Human Metapneumovirus (HMPV) case detected in Bengaluru amid reports of a virus outbreak in China. The S&P BSE BANKEX Index dropped 1.5%, reflecting the pressure on the sector.

Key Performers in the PSU Bank Sector:

Scrip	BSE Price (₹)	NSE Price (₹)	% Change (NSE)
Bank of Baroda	229.85	229.99	-4.82%
Bank of India	101.15	101.01	-3.54%
Bank of Maharashtra	53.32	53.30	-3.32%
Canara Bank	98.10	98.16	-3.24%
Central Bank	53.18	53.22	-3.43%
IDBI Bank	75.21	75.27	-2.90%
Indian Bank	508.25	507.70	-3.18%
Indian Overseas Bank	51.36	51.31	-3.37%
PNB	102.50	102.55	-3.62%
Punjab & Sind Bank	47.90	47.91	-2.72%
SBI	783.00	783.90	-1.20%
UCO Bank	43.45	43.41	-3.45%
Union Bank	115.70	115.75	-6.70%

Index Movement:

S&P BSE BANKEX: Down 1.5% at 57,057.1. The index has declined 3.8% over the last 30 days but gained 6.2% over the past year.
S&P BSE SENSEX: Down 1.2% at 78,285.9.

The PSU banking sector remains under selling pressure as the markets react to global concerns and local developments. Analysts expect near-term volatility, and all eyes remain on upcoming economic data and global trends.

Stock to watch today: Union Bank of India reports strong 34.43% YoY rise in net profit for Q2 FY25

Aditya Bhagchandani — Tue, 22 Oct 2024 03:09:10 +0000

Union Bank of India has released its financial results for Q2 FY25, demonstrating robust growth in profitability despite a slight decline in Net Interest Income (NII).

Net Interest Income (NII) for Q2 FY25 was ₹9,047 crore, down 0.87% YoY from ₹9,126 crore in Q2 FY24. This decline was mainly due to a 14.23% increase in interest expenses, which rose to ₹17,661 crore from ₹15,461 crore YoY.
Despite the slight dip in NII, net profit surged by 34.43% YoY to ₹4,720 crore, up from ₹3,511 crore in Q2 FY24. The bank effectively managed its provisions, which dropped by 8.52% YoY to ₹3,393 crore.

Other key highlights:

Interest Income: ₹26,708 crore, up 8.63% YoY from ₹24,587 crore in Q2 FY24.
Non-Interest Income: ₹5,328 crore, up 44.19% YoY from ₹3,695 crore in Q2 FY24.
Operating Profit: ₹8,113 crore, an increase of 12.35% YoY from ₹7,221 crore in Q2 FY24.
Net Interest Margin (NIM): Declined by 28 basis points YoY to 2.90%, down from 3.18% in Q2 FY24.

Union Bank of India’s strong net profit growth reflects its ability to maintain operational efficiency and manage provisions effectively, positioning it for future success despite the challenges in NII.

Investec upgrades Union Bank to Buy, expects 25.7% upside in the stock price

News Desk — Mon, 16 Sep 2024 03:12:00 +0000

Investec has upgraded Union Bank of India (UNBK) to “buy” with a target price of Rs 151, indicating a potential upside of 25.7%. The bank’s stock has corrected nearly 30% over the past 3.5 months due to concerns around corporate asset quality stress, as its SMA book increased and the management made voluntary provisions for corporate accounts.

Despite slower deposit growth and regulatory challenges affecting the sector, Union Bank is now trading at 0.8x P/B and offers a 3.8% dividend yield, close to its historical average, with a strong margin of safety built into valuations. The bank is well-capitalized, has ample liquidity, and superior provisioning cushions. Additionally, its Core Pre-Provision Operating Profit (PPoP) is better than peers, enabling the bank to absorb higher credit costs while maintaining a 1% RoA.

Exit polls propel PSU stocks: Union Bank, SBI, PFC among top gainers

Arunika Jain — Mon, 03 Jun 2024 04:53:43 +0000

As the Indian stock market experiences a bull run following the release of exit polls predicting a victory for the Bharatiya Janata Party (BJP), public sector undertaking (PSU) stocks, particularly banks and financial institutions, have witnessed significant gains. The positive sentiment in the market has driven investors towards these stocks, which have been underperforming in recent years.

Union Bank of India stock price:

Union Bank of India, one of the country’s largest PSU banks, has seen a substantial uptick in its stock price. Currently trading at Rs. 168.15, the stock has gained Rs. 8 or 5% in today’s trading session. The bank’s strong performance can be attributed to its improving asset quality and the expected boost in credit growth following the projected BJP victory.

Bank of India stock price:

Another major PSU bank, Bank of India, has also witnessed significant gains. The stock is currently trading at Rs. 135.90, up by Rs. 7.20 or 5.59%. The bank’s robust performance reflects its efforts to improve operational efficiency and reduce non-performing assets (NPAs).

Canara Bank stock price:

Canara Bank, a prominent PSU bank, is trading at Rs. 125, up by Rs. 7 or 5.93%. The bank’s strong performance can be attributed to its strategic initiatives to improve asset quality and enhance its digital banking capabilities.

Indian Bank stock price:

Indian Bank, another PSU banking giant, is trading at Rs. 596.35, up by Rs. 28.85 or 5.08%. The bank’s impressive performance reflects its strong fundamentals and the expected boost in credit growth following the projected BJP victory.

State Bank of India (SBI) stock price:

State Bank of India (SBI), the country’s largest PSU bank, has witnessed a significant surge in its stock price. Currently trading at Rs. 886.10, the stock has gained Rs. 55.75 or 6.71%. SBI’s strong performance can be attributed to its improving asset quality, robust deposit growth, and the expected increase in credit demand.

IDBI Bank stock price:

IDBI Bank, which has been undergoing a turnaround process, has also witnessed significant gains. The stock is currently trading at Rs. 91.50, up by Rs. 5.90 or 6.89%. The bank’s improved performance reflects its efforts to reduce NPAs and streamline its operations.

Indian Overseas Bank stock price:

Indian Overseas Bank, another PSU banking player, is trading at Rs. 72.95, up by Rs. 4.05 or 5.88%. The bank’s strong performance can be attributed to its focus on improving asset quality and enhancing its operational efficiency.

Bank of Baroda stock price:

Bank of Baroda, a major PSU bank, has witnessed a substantial surge in its stock price. Currently trading at Rs. 287.70, the stock has gained Rs. 22.80 or 8.61%. The bank’s impressive performance reflects its efforts to improve its asset quality and capitalize on the expected increase in credit growth.

Power Finance Corporation (PFC) stock price:

Power Finance Corporation (PFC), a leading financial institution in the power sector, has witnessed a significant uptick in its stock price. Currently trading at Rs. 541.65, the stock has gained Rs. 49.20 or 9.99%. PFC’s strong performance can be attributed to the expected boost in power sector investments following the projected BJP victory.

Rural Electrification Corporation (REC) stock price:

Rural Electrification Corporation (REC), another prominent financial institution in the power sector, has also witnessed substantial gains. The stock is currently trading at Rs. 590, up by Rs. 52.95 or 9.85%. REC’s impressive performance reflects the expected increase in rural electrification projects and the overall positive sentiment in the power sector.

The surge in PSU banks and financial institutions reflects the overall positive sentiment in the Indian stock market, driven by the exit poll predictions and the anticipation of a stable government. However, investors should exercise caution and consider various factors, such as company fundamentals, asset quality, and their own risk tolerance, before making investment decisions.

As the actual election results are yet to be announced, it is crucial for investors to keep a close eye on market developments and make informed decisions based on a comprehensive analysis of the political and economic landscape. The strong performance of PSU stocks amid the market rally highlights the sector’s potential for growth and the expected boost in credit demand and infrastructure investments. However, as with any investment, thorough research and due diligence are essential.

Disclaimer: Stock prices as on June 3, 10:12AM.

Shares of Union Bank surge to nearly 1% as ICRA boosts ratings to ‘AAA’

Aditya Bhagchandani — Fri, 24 Nov 2023 05:39:10 +0000

ICRA, the credit rating agency, has elevated the ratings of various Union Bank instruments from ‘AA+’ to ‘AAA’ and concurrently adjusted the outlook to ‘stable’ from ‘positive’.

The upswing in Union Bank’s long-term rating is attributed to a sustained enhancement in the earnings profile. This improvement stems from a decrease in fresh non-performing asset (NPA) additions, robust recoveries/upgrades, and a commendable provision coverage on legacy NPAs, resulting in a moderation in credit costs.

ICRA, in its rationale, highlighted that the strengthening of capitalization levels and solvency profile has been gradual but notable, primarily driven by improvements in internal capital generation.

On November 23, Union Bank of India shares settled at Rs 106 on the NSE, experiencing a marginal decline of 0.61 percent from the closing price of the preceding session.

However, as of 11:03 am, the shares exhibited a 0.61% uptick, trading at ₹106.75.

In the financial report for the quarter ending September FY24, Union Bank reported a robust net profit of Rs 3,511 crore, reflecting a substantial 90 percent year-on-year increase. The net interest income also demonstrated a commendable growth of 10 percent year-on-year, reaching Rs 9,126 crore in the quarter ended September 2023, with a net interest margin expansion of 3 basis points to 3.18 percent.

Union Bank board approves Rs. 5,000 crore fundraising plan via QIP

Adesh Dixit — Mon, 21 Aug 2023 13:42:36 +0000

According to a regulatory filing on August 21, the board of Union Bank of India has approved the funding of up to Rs 5,000 crore through a qualified institutional placement (QIP) and has fixed a floor price of Rs 91.10 per share.

The choice was made by the committee of directors for capital fund raising at Union Bank, which convened earlier in the day.

According to the exchange filing, the committee “approved the opening of the issue today, i.e. August 21, 2023,” and “approved the floor Price of Rs 91.10 per equity share.”

The panel approved the issuance of equity shares through qualified institutional placement for a sum “not exceeding Rs 5,000 crore, subject to the necessary regulatory/statutory approvals,” the state-run lender stated.

The committee will reconvene on August 24 to “consider and approve the issue price, including a discount, if any thereto” for the equity shares to be allocated to eligible institutional buyers, in accordance with the issue, according to another exchange filing by Union Bank.

The statement comes one month after Union Bank revealed that its standalone net profit for the first quarter of the current fiscal year increased by 107 percent year over year to Rs 3,236.44 crore. The lender’s net interest income rose 16.59 percent year over year to Rs 8,840 crore.

The lender also reported an improvement in asset quality, with a 288-bps reduction in the gross non-performing asset (NPA) ratio and a 173-bps decline in the net NPA ratio as compared to the same time last year.

On the BSE, Union Bank’s stock price at the end of the trading day on August 21 was Rs 91.80, 2.81 percent less than it had been at the previous day’s closing.

Stocks to watch: Zomato, Adani Enterprises, SBI, ONGC, AstraZeneca Pharma and more

Aryan Jakhar — Wed, 30 Nov 2022 02:55:51 +0000

Due to subdued global cues from the foreign markets, the major benchmark indices are likely to open trading on a calm tone. The GDP figures, which will be released after market close on Wednesday, will be closely watched by the equities markets.

Zomato: Following news that Alibaba Group Holding intends to sell an approximate 3% stake worth $200 million through a block deal today, shares of the food delivery startup are anticipated to draw attention. Through its financial affiliate Ant Group, the Chinese e-commerce behemoth now has a 13.3% interest in Zomato.

Adani Enterprises: After Adani Properties on Tuesday won the contract for the restoration of Dharavi, Mumbai, with an offer worth Rs 5,069 crore, shares of the flagship Adani Group company and other connected firms are anticipated to experience some movement. In 17 years, the project is supposed to be finished.

SBI: On Tuesday, the bank’s Executive Committee gave its approval to a plan to raise up to Rs 10,000 crore through infrastructure bonds during FY23 (including a green shoe option of Rs 5,000 crore).

Britannia Industries: The business has partnered with French cheese producer Bel SA to create, produce, market, distribute, trade, and sell cheese products in India and other countries.

Gland Pharma: To grow its contract research and manufacturing operations in Europe, the company has entered into a put option agreement to buy French company Cenexi Group for an equity value not to exceed 20 million euros (about Rs 1,000 crore).

ONGC: According to sources, the government-appointed Kirit Parikh review panel has recommended a floor price of $4 per million British thermal units and a ceiling price of $6.5 million British thermal units for natural gas produced from legacy fields of state-owned companies for five years, as opposed to the current rate of $8.57.

Spandana Sphoorty Financial: The board of the company will meet on December 2 to discuss and approve raising money through the issuance of debentures through a private placement.

Rice-related: To encourage the sale of the product, the government on Tuesday abolished the ban on the export of organic non-basmati rice, including broken rice. From April to September of this fiscal year, rice exports totaled $5.5 billion. In the years 2021 to 2022, it was $9.7 billion.

Biocon: The company’s division Biocon Biologics has finished the multi-billion dollar acquisition of its business partner Viatris Inc.’s global biosimilars division. In February 2022, Biocon Biologics signed a contract to buy the biosimilars division of Viatris Inc. for up to $3.33 billion (about Rs 24,990 crore).

AstraZeneca Pharma: The pharmaceutical company has been given permission by the regulatory body to commercialise diabetes medications. Both individuals with CKD and those without diabetes are eligible for the approval, it was added.

Union Bank: To replace expiring instruments and maintain activity, the state-owned bank has obtained Rs 2,200 crore in capital through tier II bonds.

Stocks in F&O ban: BHEL, Delta Corp, Indiabulls Housing Finance, and PNB are the stocks that are subject to a F&O restriction on Wednesday.

Union Bank Q2 net profit up 21.07 percent to INR 1,848 cr

United News of India (UNI) — Thu, 20 Oct 2022 12:39:51 +0000

Public Sector Union Bank of India on Thursday reported a 21.07 per cent increase in net profit to INR 1,848 crore, for the second quarter ended September 30, 2022, due to reduction in Non Performing Assets (NPA).

During the period in the previous year, the net profit was Rs 1,526 crore while the Net NPA during the Q2 FY23 was reduced to 2.64 percent against 4.61 per cent in the corresponding quarter in the previous year.

Net interest income rose 21.61 per cent to Rs 8,305 crore, while net interest margin jumped to 3.15 per cent from 2.95 percent, the bank said in a release.

The Bank continues to demonstrate a strong liability franchise, it said that its CASA deposits have increased by 9.42 per cent YoY and now the Bank has a total deposits base at Rs.10,43,265 Crore at the end of Q2FY23.

Total Business of the Bank increased by 17.33 per cent YoY, wherein Gross Advances increased by 21.92 percent YoY and Total Deposit grew by 14.14 per cent YoY.

Bank now has a total Business of Rs.18,16,955 crore as on September 30, 2022, the release added.

CEO of Union Bank of India: restructures loans worth Rs 13,000 crore, follows resolution framework by RBI

Aayushi Singh — Thu, 29 Jul 2021 15:15:15 +0000

On July 29, the Union Bank of India, which is the fourth-largest public sector bank in the country, had said that it had so far restructured the loans worth Rs 15,927 crore under the two resolution frameworks announced by the Reserve Bank of India.

Rajkiran Rai G, MD, and CEO of the Union Bank said that a large piece of the restructured accounts was from the retail segment. He added on saying that under the resolution framework 1.0, the lender had restructured accounts worth Rs 11,965 crores, out of which Rs 3,702 crore were from the personal loans segment, Rs 2,427 crore were from the micro, small and medium enterprises segment and Rs 5,836 crore were from the large corporates.

Till June 30, 2021, the total recast amount was Rs 3,962 crore under the resolution framework. The scheme would be open for three more months. In the second round of the recast, the personal loans accounted for Rs 2,855 crore, and from the MSME’s over Rs 954 crore came, the rest came from agriculture. Under the resolution framework, 2.0 announced on May 5, 2021, large corporates were not eligible for the recast.

Rajkiran Rai said that they have expected that retail and MSME would be put together, and restructuring worth Rs 2,000 crore might occur in the second quarter.

On August 6, 2020, the first resolution framework was issued and was applied to all the categories of borrowers affected by the COVID-related stress.

Slippages worth Rs 7,049 crore were reported by Union Bank in Q1FY22, out of which 45 per cent was from the MSME segment. 15 per cent of the total slippages were from Retail which was worth Rs 1,078 crores. Mr. Rai said that the stress was mainly due to COVID-19 as the EMI payments had been affected, and the stress in retail was already covered in the June quarter and there was not much in the September quarter.

The CEO had mentioned that the bank was confident that stress would get lower with the aid of restructuring and the facilities extended under the emergency credit line guarantee scheme (ECLGS). In FY22, the Union Bank has expected recoveries and upgrades worth Rs 13,000 crore. The recoveries and upgrades in Q1 were over Rs 4,300 crore.