Union Bank of India Shares Drop Over 5% After Q4 FY25 Business Update

The Union Bank of India share price took a notable hit on Friday, falling over 5% to ₹122.50 by afternoon 1:42 PM on Friday after its Q4 FY25 business update was released. Despite reporting solid growth in total business and advances, the stock reacted negatively, signalling mixed sentiments among investors.

Steady Business Growth in Q4 FY25

As per the latest filing with the exchanges, Union Bank of India’s total business for the quarter ending March 2025 rose by 7.85% year-on-year to ₹22,92,625 crore. This includes gross advances of ₹9,82,875 crore, reflecting an 8.62% rise from ₹9,04,884 crore in the same period last year. On the deposits side, the bank posted a 7.22% growth, bringing total deposits to ₹13,09,750 crore.

Union Bank of India shares price, however, didn’t mirror this positive performance. Despite a strong business update, the share price drop suggests that investors may be looking beyond the headline numbers.

Retail Lending Shows Strong Momentum

One of the brighter spots in the Q4 FY25 performance was retail lending. Domestic retail advances surged by 22.14% year-on-year, reaching ₹2,16,777 crore. This indicates a robust credit demand from individuals and households, which is a positive sign for future growth.

CASA (Current Account and Savings Account) also showed modest improvement. Domestic CASA stood at ₹4,26,242 crore, up by 3.94% from the previous year’s ₹4,10,071 crore. A healthy CASA ratio typically supports better margins for banks, although the Union Bank of India share price continued to feel the heat in the market.

Q3 Performance Sets a Positive Tone

While Q4 figures are yet to be fully revealed, the bank’s Q3 FY25 performance was strong. Union Bank of India posted a 27.53% jump in standalone net profit, reaching ₹4,623 crore compared to ₹3,625 crore in Q3 FY24. Total income also climbed by 6.32%, rising from ₹25,521 crore to ₹27,135 crore.

What Lies Ahead for Union Bank of India?

Union Bank of India continues to report healthy growth in key business metrics, including deposits and retail lending. However, the Union Bank of India shares price may remain under pressure in the short term due to concerns over profitability margins and sector-wide headwinds.

Investors are advised to monitor upcoming full-year earnings and the management’s commentary on future guidance. As public sector banks navigate a tight interest rate environment and regulatory shifts, Union Bank of India’s strategic focus on retail growth and stable asset quality could play a pivotal role in driving future performance.

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