Shares of Union Bank of India fell nearly 6% to a low of ₹141.54 per share after the state-run bank shared its business updates for the April-June quarter of FY2025-26. The bank has witnessed the lowest loan growth in four quarters.
The total global business of this public sector bank stood at ₹22.14 lakh crore, up 5.01% to ₹22.14 lakh crore from ₹22.08 lakh crore in Q1 FY2024. Sequentially, it has witnessed a decline of 1.80%.
On the deposit front, the total global deposits of Union Bank grew 3.63% year-on-year to ₹12.39 lakh crore in Q1 FY2026. However, it declined 2.54% quarter-on-quarter.
Further, its domestic deposits declined 2.54% quarter-on-quarter to ₹12.39 lakh crore, but were up 3.62% year-on-year.
Domestic Current Account and Savings Account (CASA) deposits also witnessed a massive decline of 5.43% on a sequential basis to ₹4.03 lakh crore.
Union Bank’s global gross advances stood at ₹9.74 lakh crore, down 0.85% quarter-on-quarter. However, it grew 6.83% year-on-year. Subsequent domestic advances also declined 0.83% quarter-on-quarter to ₹9.38 lakh crore, but grew 6.75% year-on-year.
Last seen, the bank’s shares were trading at ₹144.06 per share, down 4.12% on the National Stock Exchange.
The state-owned bank’s net interest income remained almost stable at ₹9,514 crore in Q4 FY25 as against ₹9,437 crore in the same quarter last year. This was mainly due to a 7.5% year-on-year increase in interest expenses and a 5.1% rise in total interest income.
However, the bank’s operating profit grew by nearly 18% to ₹7,700 crore due to a marginal decline in operating expenses.
Provisions for bad debts and contingencies also declined by 15% to ₹2,715 crore from ₹3,222 crore. As a result, net profit for the quarter grew 50% to ₹4,985 crore.
On the balance sheet front, total advances for the quarter grew 8.6% y-o-y to ₹9.83 lakh crore, and deposits grew at a robust 7.22% to ₹13 lakh crore. The bank’s asset quality also improved with the GNPA and NNPA ratios at 3.6% and 0.63%, respectively, as against 4.76% and 1.05%, respectively, in the same quarter last year.
