Union Bank of India shares tank 6% intraday as lender sees weakest loan growth in four quarters; check details

The PSU bank’s total global business stood at ₹22.14 lakh crore, rising 5.01% from ₹22.08 lakh crore in Q1 FY24. Sequentially, it has seen a decline of 1.80%.

On the deposit front, Union Bank’s total global deposits increased 3.63% year-on-year (YoY) to ₹12.39 lakh crore for Q1 FY26. Quarter-on-quarter it has, however, dipped 2.54%.

Further, its domestic deposits declined 2.54% QoQ to ₹12.39 lakh crore but were 3.62% higher YoY.

The domestic current account and savings account (CASA) deposits also witnessed a sharp fall of 5.43%, sequentially, to ₹4.03 lakh crore.

Union Bank’s global gross advances were reported at ₹9.74 lakh crore, down 0.85% QoQ. It, however, advanced 6.83% YoY. The domestic advances that followed also declined 0.83% QoQ to ₹9.38 lakh crore but increased 6.75% YoY.

Last seen, shares of the lender were trading at ₹144.06 apiece on the National Stock Exchange, sliding 4.12%.

The state-owned bank’s net interest income for the bank largely remained flat at ₹9,514 crore in Q4 FY25 as against ₹9,437 crore in the previous year's similar quarter. This was largely due to a sharper increase in the interest expenses at 7.5% YoY than in the total interest income at 5.1%.

However, a moderate drop in the operating expenses led to a nearly 18% jump in the operating profit for the bank at ₹7,700 crore.

The provisions for bad debts and contingencies also dropped 15% YoY to ₹2,715 crore as against ₹3,222 crore. Consequently, the net profit for the quarter jumped by 50% YoY to ₹4,985 crore.

On the balance sheet front, the total advances for the quarter grew by 8.6% YoY at ₹9.83 lakh crore, and the deposit growth remained healthy at 7.22% at ₹13 lakh crore. The asset quality for the bank also improved with GNPA and NNPA ratios of 3.6% and 0.63% as against 4.76% and 1.05% in the previous year's same quarter.