Union Bank of India cracks 7% on weak December quarter business update

Over the past one month, shares of Union Bank of India cracked over 10 percent

Shares of Union Bank of India tumbled 7 percent to Rs 115 per share on January 6 after the state-run reported weakest December quarter business update amongst all lenders so far.

Union Bank's deposits grew modestly by 4 percent year-on-year (YoY) to Rs 12.16 lakh crore in Q3FY25, but declined 2 percent on a quarter-on-quarter (QoQ) basis. Global gross advances, meanwhile, rose by 6 percent YoY and 2.2 percent QoQ in the December quarter.

Catch all the market action on our LIVE blog

In terms of domestic deposits, the PSU lender registered 2.4 percent YoY growth in Q3FY25 and domestic advances rose by 5.3 percent YoY. Domestic CASA deposits, however, saw 0.4 percent YoY drop in the December quarter update and domestic retail advances saw 16 percent jump YoY.

Around 10 brokerages cover Union Bank of India, with 7 suggesting a "buy" on the counter, 2 shared "hold" calls, and 1 shared "sell" rating.

In Q2FY25, Union Bank's net profit grew by 33 percent YoY to Rs 4,721 crore, whereas net sales rose by 8.7 percent YoY to Rs 26,886 crore.

Over the past one month, shares of Union Bank of India cracked over 10 percent, as against 2 percent decline in the benchmark Nifty 50 index. Earlier, the stock had hit 52-week low of Rs 106 per share on October 25, 2024 and 52-week high of Rs 172 apiece on June 3, 2024.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.