Union Bank of IndiaUNIONBANK₹144.59 -3.77%

Shares of Union Bank of India declined as much as 6% on Wednesday following the lender’s Q1FY26 business update, which revealed a sequential drop in deposits and total business, raising investor concerns despite strong growth in retail lending.

According to provisional figures, global business stood at ₹22.14 lakh crore as of June 30, 2025, down 1.80% quarter-on-quarter (QoQ), though up 5.01% year-on-year (YoY). The decline was led by a 2.54% QoQ fall in global deposits, which came in at ₹12.40 lakh crore.

Domestic CASA (Current Account and Savings Account) deposits also slipped 5.43% QoQ, reflecting a broader industry trend of rising term deposit preference in a high-interest-rate environment. Domestic gross advances, meanwhile, declined marginally by 0.83% QoQ.

However, not all segments weakened. The bank reported a 2.5% QoQ growth in domestic RAM (Retail, Agriculture, MSME) advances, with retail lending surging 5.63% QoQ, signaling continued traction in its retail loan book. 

Despite healthy annual growth in key lending segments, the sequential contraction in deposits and total business weighed on market sentiment, leading to a sharp intraday fall in the stock.

Over the last three years, Union Bank has given multibagger returns of more than 300%.

Let’s take a look at its Factor Analysis scores:

Note: The stock price mentioned is as of 3:30 PM.

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