RBI Slaps ₹8,43,000 Penalty on Union Bank of India; Share Price in Focus

As per news report, The Reserve Bank of India (RBI) has levied a monetary penalty of ₹8,43,000 on Union Bank of India due to operational lapses identified in the remittance of soiled notes and cases of ATM cash out. The bank reported that the penalty would not have any major effect on its financial or operational activities. 

Penalty Imposed by RBI for Operational Deficiencies 

The RBI’s action against Union Bank of India was taken based on irregularities it found following a statutory inspection. The inspection revealed that there were shortcomings in the manner in which the bank remitted soiled notes to the RBI and also noted ATM cash out events.  

As a regulatory body, the RBI enforced the penalty under its supervisory authority to ensure adherence to prescribed norms for currency management and customer accessibility. 

Union Bank disclosed the imposition of the penalty through an official exchange filing. In the statement, the bank confirmed that the penalty will not significantly impact its financial performance or operational efficiency and remains an isolated regulatory measure. 

Leadership Change at Union Bank 

Coinciding with this event, Union Bank recently welcomed a new Executive Director. On November 26, 2025, Amresh Prasad officially took over for a 3-year term.  

Prior to this appointment, he served as the Chief General Manager at Punjab National Bank and carries over 32 years of experience in various aspects of banking, including corporate credit, transaction monitoring, and credit review functions across multiple hierarchical levels. 

Read More: City Union Bank Share Price Jumps 4% as Lender Opens 3 New Branches in Tamil Nadu! 

Union Bank’s Q2 FY26 Earnings Results 

Union Bank reported a 10% year-on-year drop in net profit for Q2 FY26, with earnings at ₹4,249 crore, compared to ₹4,719.7 crore in the same quarter of the previous fiscal year. The decline in profit was primarily attributed to reduced recoveries from written-off assets by around ₹500 crore.  

The net interest income also saw a 2.6% drop to ₹8,812 crore, along with a 23 basis points fall in the net interest margin, which settled at 2.67% for the quarter. 

Union Bank of India Share Price Performance  

As of November 27, 2025, at 9:37 AM, Union Bank of India share price on NSE was trading at ₹154.35 down by 0.68% from the previous closing price. 

Conclusion 

The ₹8,43,000 penalty imposed by the Reserve Bank of India on Union Bank of India highlights the importance of regulatory compliance in cash handling processes. While the bank stated that the penalty would not have any major effect on its financial or operational activities. 

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