Union Bank Share Price Rises Over 3% Post Strong FY25 Results; Profit Up 32%, Dividend Announced

Union Bank of India’s Board of Directors has approved the financial results for the quarter and year ended March 31, 2025. The bank has shown strong growth in profits, improved asset quality, increased business volumes, and continued its efforts toward financial inclusion and green initiatives.

Dividend Declared

The Board has recommended a dividend of ₹4.75 per equity share (47.5% of the face value of ₹10), subject to shareholder and regulatory approvals.

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Robust Financial Performance

• The net profit of the bank increased by 31.79% year-on-year (YoY) in FY25, highlighting strong operational performance.
  
   
• Non-interest income (from sources like fees, commissions, and trading income) grew by 23.21% YoY, adding to overall profitability.
  
   

Steady Growth in Business

• The total business of the bank rose by 7.82% YoY, reaching ₹22,92,644 crore as of March 31, 2025.
  
   
• Gross advances increased by 8.62% YoY, and total deposits went up by 7.22% YoY, reflecting growing customer trust and credit demand.
  
   

Strong Liability Franchise

• The bank’s global deposits stood at ₹13,09,750 crore, up 7.22% YoY, confirming its solid liability base.
  
   

Growth in RAM (Retail, Agriculture, MSME) Segments

• The RAM segment grew by 10.17% YoY in FY25.
  
   
  • Retail loans saw significant growth of 22.14% YoY.
    
     
  • MSME advances rose by 12.50% YoY.
    
     
• The RAM segment now contributes 56.20% to the bank’s total domestic advances, underlining its focus on inclusive growth.
  
   

Improvement in Asset Quality

• Gross Non-Performing Assets (NPA) reduced by 116 basis points to 3.60% as of March 31, 2025.
  
   
• Net NPA declined by 40 basis points to 0.63%, indicating better recovery and risk management practices.

Stronger Return Metrics

• Return on Assets (RoA) increased by 23 basis points YoY to 1.26%.
  
   
• Return on Equity (RoE) rose by 162 basis points YoY to 17.20%, indicating better returns to shareholders.
  
   

Support for Government Financial Inclusion Schemes

Union Bank of India continues to be a key player in supporting the Government of India’s mission to promote financial access to all, especially underserved communities.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

• This life insurance scheme saw 6.08 lakh new enrollments during the quarter ended March 31, 2025.
  
   

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

• Under this government-backed accident insurance scheme, 23.27 lakh new enrollments were made in Q4 FY25.
  
   

Pradhan Mantri Jan Dhan Yojana (PMJDY)

• Union Bank helped open 3.21 crore accounts, with a balance of ₹13,266 crore as of March 31, 2025.
  
   
• This is up from 2.95 crore accounts with ₹10,918 crore as of March 31, 2024.
  
   

Atal Pension Yojana (APY)

• This pension scheme for the unorganised sector saw 2.19 lakh new enrollments in the last quarter of FY25.
  
   

Promoting Women Entrepreneurs – Union Nari Shakti Scheme

• The bank sanctioned 20,820 applications under this scheme, providing loans worth ₹2,577 crore to support women-led businesses during FY25.
  
   

Credit for Green Initiatives

Union Bank of India also focused on environmentally responsible financing during the year:

1. Renewable Energy Sector

• Sanctioned loans worth ₹28,742 crore to support clean energy projects as of March 31, 2025.
  
   

2. Union Green Miles (Eco-Friendly Transport Finance)

• Under this green initiative, loans of ₹779 crore were sanctioned by the bank to encourage sustainable transportation solutions.

Share Price Movement

As of May 9, 2025, Union Bank of India share price (NSE: UNIONBANK) are trading at ₹119.25, up 3.18% or ₹3.67 from the previous close. The stock opened at ₹115.00 and touched an intraday high of ₹119.90 and a low of ₹114.51.

The bank has a market capitalisation of ₹90,970 crore, a price-to-earnings (P/E) ratio of 5.55, and offers a dividend yield of 3.02%. The current quarterly dividend amount is ₹0.90 per share.

The stock has touched a 52-week high of ₹172.50 and a 52-week low of ₹100.81.

Conclusion

Union Bank of India has posted an impressive performance in FY25 with strong profit growth, improved asset quality, and robust lending across key segments. Its commitment to inclusive banking, support for government schemes, and focus on sustainable finance highlight its strategic direction for long-term growth and value creation.

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