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Union Bank Shares Slipped ~5% After Reporting Q1FY26 Business Update

Written by: Sachin GuptaUpdated on: 9 Jul 2025, 5:14 pm IST
Union Bank shares saw a negative market reaction after reporting Q1FY26 business update, wherein, it reported growth in deposits.
Union Bank Shares Slipped ~5% After Reporting Q1FY26 Business Update
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On July 9, 2025, Union Bank shares fell as much as 5%, reaching a day low of 141.85 at 11:15 AM, after opening at 148.00 on BSE. The fall in Union Bank shares follows the release of Q1FY26 business update

Single Digit Growth in Deposits

As of June 30, 2025, the bank reported a 5.01% year-on-year (YoY) growth in total global business, reaching ₹22.14 lakh crore. However, on a quarter-on-quarter (QoQ) basis, this marked a decline of 1.80%. Global deposits rose 3.63% YoY to ₹12.39 lakh crore but slipped 2.54% QoQ. Domestic deposits followed a similar trend, increasing 3.62% YoY but falling 2.54% QoQ, while CASA deposits inched up just 0.92% YoY and dropped 5.43% QoQ.

Loan Book Grew Across Segments

On the advances front, the bank’s global gross advances rose 6.83% YoY, despite a marginal 0.85% QoQ dip. Domestic advances were up 6.75% YoY, with a slight 0.83% QoQ decline. The RAM segment (Retail, Agriculture, and MSME) posted a strong 10.31% YoY increase and a 2.50% QoQ gain. Leading the growth, domestic retail advances surged 25.60% YoY and 5.63% QoQ, highlighting robust demand in the retail lending space.

Union Bank FY25 Business Highlights

For the financial year ended FY25, the bank reported its highest-ever annual net profit, amounting to ₹17,987 crores, reflecting a robust year-on-year (YoY) growth of 32%. In the fourth quarter (Q4 FY25), net profit stood at ₹4,985 crores, registering a strong YoY increase of 51%.

The bank’s operating profit for Q4 FY25 was recorded at ₹7,700 crores, reflecting a YoY growth of 18%, while the full-year operating profit reached ₹31,090 crores, marking a 10% increase over the previous fiscal.

Profitability ratios saw notable improvement. Return on Assets (RoA) improved to 1.35% in Q4 FY25, up from 0.97% in Q4 FY24, and higher than the 1.3% recorded in Q3 FY25. Return on Equity (RoE) rose to 19.07%, compared to 15.12% in the same quarter last year.

The bank maintained a strong capital position, with a Capital Adequacy Ratio (CAR) of 18.02% and a CET1 ratio of 14.98%, both well above the regulatory minimum, providing ample buffer for future expansion.

Also Read: CONCOR Shares in Focus After Release of Q1 Business Update: Domestic Volumes Rose 9%

On the asset quality front, continued efforts to enhance underwriting practices—through centralisation, verticalization, and digitisation—resulted in sustained improvements. Gross Non-Performing Assets (GNPA) declined by 116 basis points YoY to 3.6%, aligning with the bank’s earlier guidance of bringing it below 4%. Net NPA fell by 40 basis points YoY to 0.63%. The Provision Coverage Ratio (PCR) stood at a healthy 94.61%, reflecting a well-provisioned and resilient balance sheet.

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. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jul 9, 2025, 11:41 AM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

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