Union Bank of India’s share price experienced a decline from the day’s high on June 3, 2025, now trading at ₹151.7 on the National Stock Exchange by midday. This dip followed a strong rally where the stock gained more than 20% in the past month, driven by robust fourth-quarter results and positive sentiment in public sector banks.
On June 3, Union Bank’s share price fell from an earlier high of ₹158.65 to ₹151.7 by midday trading. Despite this slip, the stock has shown considerable strength over recent weeks due to improved financial performance and supportive market conditions.
The recent gains in Union Bank’s share price were influenced by:
Union Bank reported a 51% year-on-year increase in net profit, reaching ₹4,985 crore for the quarter ending March 2025. The profit growth was supported by higher interest income and improved asset quality.
Net interest income remained steady at ₹9,514 crore, a slight increase from ₹9,437 crore in the same period last year. However, net interest margin decreased to 2.87% from 3.09%, reflecting sector-wide pressures from increased deposit costs and lower loan yields following the RBI’s February rate cut.
Read More: Union Bank FY25 Results; Profit Up 32%, Dividend Announced!
The bank met its target of reducing gross non-performing assets below 4%, with gross and net NPA ratios at 3.60% and 0.63% respectively at the end of March 2025.
Union Bank closed the fiscal year with a loan book of ₹9.8 lakh crore, an 8.6% increase. Deposits grew 7.2% to exceed ₹13 lakh crore. Both loan and deposit growth fell short of the bank’s guidance ranges of 11-13% and 9-11%, respectively.
Union Bank’s share performance aligns with a broader rise in public sector bank stocks, supported by strong GDP growth and expectations of a rate cut by the Reserve Bank of India. The PSU Bank index has gained around 25% in the last year.
Over the last month, Union Bank of India’s share price has gained 20.5%, and it has risen nearly 40% in the past 3 months.
Union Bank of India’s share price has demonstrated notable strength over recent months, supported by strong quarterly earnings and improving asset quality. The stock slipped slightly from the day’s high on June 3.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jun 3, 2025, 1:01 PM IST
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