Union Bank of India shares fall 7% after Q1 business update lags peers

Shares of state-run Union Bank of India Ltd. are down 7% on Friday, July 3, in reaction to their June quarter business updates that were released after market hours on Thursday evening.

This is the biggest single-day fall for Union Bank of India's shares in the last three months. The stock has now declined in seven out of the last eight trading sessions.



For the June quarter, Union Bank's gross advances grew by 12.5% from last year to ₹10.96 lakh crore, while total deposits went up by 3.5% to ₹12.83 lakh crore from ₹12.39 lakh crore during the year-ago period.

However, on a sequential basis, the gross advances were up only 1.6%, while total deposits were down 1.8%.

Domestic deposits grew by 3.5% year-on-year to ₹12.82 lakh crore, while CASA deposits were up 11.7% to ₹4.5 lakh crore. Both the metrics were down 1.8% and 2.1% respectively on a quarter-on-quarter basis.

Loans in the Retail, Agri, MSME (RAM) segment increased by 11.6% from last year and 1.6% sequentially to ₹6.08 lakh crore.

Credit-Deposit Ratio (CD Ratio) at the end of the quarter grew by 83.38%, a 714 basis points jump from last year.

Union Bank Lags Peers So Far

Union Bank's advances and business growth have lagged peers so far, with Bank of India having reported a 18.6% loan growth and 14.9% deposits growth.

Canara Bank's advances also grew by 13.6%, while deposits grew by 11.1% from the year-ago period. Indian Bank's gross advances were up nearly 14% and deposits were up 13% from the same quarter last year.

During the March quarter, Union Bank's advances and deposits had grown by 9.7% and 2.7% year-on-year respectively. Both gross and net NPA had improved from the previous quarter.

Shares of Union Bank of India are trading 6.8% lower on Friday at ₹162.7. The stock is down 21% from its 52-week high of ₹205. The loss means that the stock has trimmed its gains for 2026 to 6%.