Union Bank of India Shares Falls Nearly 4% on Sequential Business Contraction

Mumbai, July 3: Union Bank of India (UNIONBANK) was trading lower by Rs 6.47, or 3.82% at Rs 162.88 on Friday midday even as trading volume increased substantially after the public sector lender reported a sequential contraction in its June-quarter deposit base and CASA ratio within a regulatory filing, overshadowing healthy year-on-year growth in business. 

Friday’s slide comes after shares of UNIONBANK soared sharply over the last couple of sessions to hit a multi-week high, and is the most among major lenders in the public sector banking space tracking weakness in the Nifty PSU Bank index itself, which traded lower in morning deals as investors reacted to a slew of provisional business updates by state-run banks ahead of the commencement of the June-quarter earnings season. This also wiped out substantial gains made by the stock in the last few sessions. 

UNIONBANK opened at Rs 168.79 (Friday’s high) and traded as low as Rs 161.60 as heavy selling was seen during morning deals. The stock’s volume weighted average price so far is Rs 163.16 as compared to its previous close of Rs 174.35. The stock fell over Rs 11 below its previous close at one stage during the day’s trade.  

The sharp gap between the previous closing and Friday’s opening price indicates a negative market reaction towards the lender’s business update released post-market hours on Thursday evening that provided a glimpse into how the bank’s deposit mobilisation fared during the June quarter.  

As of Friday’s trading session, the order book for UNIONBANK is heavily skewed towards the sell side with 53.97% of the total orders or 32,50,281 shares on offer while the buy-side volume constitutes 46.03% or 27,71,702 shares.

The stock continued to see pressure on the downside and remained closer to its intraday lows for the most part of the morning session after the initial gap down. 

Weekly Trend 

Union Bank of India shares opened around Rs 174.35 on June 29 and fell to the weekly low of Rs 172.00 on June 30. Thereafter it rallied to a weekly high of Rs 174.70 on July 01 and Friday’s session saw it drop sharply to Rs 162.84. Shares of UNIONBANK shed gains accrued over the week in the last two sessions after weak provisional numbers were reported by the bank.

Union Bank reports sequential dip in deposits and CASA ratio 

As per provisional business figures for the quarter ended June 2026 published to exchanges by Union Bank of India as per SEBI mandated disclosure requirements, total gross advances grew by 12.50% on a year-on-year basis and domestic advances increased 13.11% year-on-year during the June quarter, but on a global basis total business dipped 0.24% quarter-on-quarter to Rs 23,79,696 crore from Rs 23,85,502 crore as of March 31, 20 26.  

Total deposits during the quarter ended June 2026 fell 1.80% sequentially to Rs 12,83,365 crore from Rs 13,06,891 crore in the preceding March quarter. Similarly, domestic CASA deposits during the quarter under review declined 2.12% quarter-on-quarter to Rs 4,50,220 crore. This dragged down the bank’s CASA ratio to 35.10% as compared to 35.21% reported in the March quarter, contracting by 11 basis points sequentially although it remains well above the CASA ratio reported during the June quarter last year. 

The bank also reported that its credit- deposit ratio jumped to 83.38% during the June quarter from 80.40% in the preceding March quarter.

Source:
https://www.nseindia.com/get-quote/equity/UNIONBANK/Union-Bank-of-India