HDFC Bank shares fall 2% after Q3 business update; Union Bank jumps 4% to fresh 52-week high

Nifty Bank index rose 0.13% on Monday, against muted broader markets. The index has gained more than 10% since October, compared to a 7% rise in the benchmark Nifty 50.

• HDFC Bank shares fell over 2 percent after Q3 FY26 business update
• Union Bank of India shares hit 52-week high, rising more than 4 percent
• Federal Bank and IDFC First Bank shares dropped over 1 percent each

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The shares of HDFC Bank dropped more than 2 percent on January 5 after the company released provisional updates for the third quarter of the ongoing financial year 2026. Union Bank of India and other lender stocks meanwhile gained sharply.

HDFC Bank shares fell to Rs 978.50 apiece, emerging as the top loser on the benchmark indices Sensex and Nifty. Union Bank of India shares meanwhile gained more than 4 percent to a fresh 52-week high of Rs 162.99 apiece.

The Nifty Bank index closed marginally lower at 60,044.20.

HDFC Bank Q3 business update:

HDFC Bank on January 5 reported a 9 percent YoY rise in average advances under management (advances grossing up for inter-bank participation certificates, bills rediscounted and securitisation/assignment) to Rs 28.64 lakh crore in Q3 FY26, from Rs 26.28 lakh crore in Q3 FY25.

The lender's period end advances under management meanwhile rose 9.8 percent YoY to Rs 29.46 lakh crore at the end of the quarter, while gross advances jumped 11.9 percent YoY to Rs 25.43 crore.

HDFC Bank’s average deposits rose 12.2 percent to Rs 27.52 lakh crore, while CASA deposits gained 9.9 percent YoY to Rs 8.18 lakh crore during the quarter.

Union Bank of India Q3 business update:

Union Bank of India released its provisional Q3 business updates in the post market hours of January 2. The company’s total gross advances grew 7.13 percent YoY to Rs 10.17 lakh crore, while deposits rose 3.36 percent YoY to Rs 12.23 lakh crore.

The lender’s domestic CASA Deposits grew 5 percent YoY to Rs 4.15 lakh crore.

Other bank stocks:

Federal Bank and IDFC First Bank shares fell over 1 percent each, while Kotak Mahindra Bank Punjab National Bank (PNB), IndusInd Bank and Canara Bank shares closed in the red with marginal losses.

Yes Bank shares rose more than 2 percent, while Axis Bank, ICICI Bank and AU Small Finance Bank shares rose more than 1 percent each. State Bank of India (SBI) and Bank of Baroda shares closed in the green with marginal gains.

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