Shares of PSU lender Union Bank of India plunged over 5 percent on April 4 after the Q4FY25 business update failed to meet estimates, snapping two days of gains.
In an exchange filing, Union Bank of India announced that its total loan book increased 8.6 percent to cross Rs 9.82 crore by the end of the March quarter of FY25, however, this is lower than the 11-13 percent loan growth guidance previously stated by the lender.
Union Bank's total deposits too fell below its guidance level. The lender had estimated that the total deposits would grow 9-11 percent in Q4FY25, however, the bank on reported a 7.22 percent rise in its total global deposits, while domestic deposits grew by 6.05 percent on year.
Union Bank's domestic current and savings account deposits rose nearly 4 percent to Rs 4.10 lakh crore during the reported quarter.
Despite the fall on April 4, the shares of the PSU lender have surged over 10 percent in the past one month, dodging the volatility surrounding US President Trump's tariff announcement.
In January 2025, Union Bank had reported a 28.2 percent on-year growth in net profit at Rs 4,603.6 crore for the third quarter of FY25, up from Rs 3,589.90 crore in the same period last fiscal. The profit growth was led by lower provisions and higher-than-expected other income.
Asset quality also improved as the gross non-performing asset (GNPA) ratio eased to 3.85 percent in the December quarter, down from 4.36 percent in the September quarter, while the net NPA ratio declined to 0.82 percent from 0.98 percent on a sequential basis.
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