Summary:
Union Bank of India shares fell over 7% after the bank's Q1 FY27 business update indicated moderation in credit growth and sequential pressure on deposits. Despite the weak market reaction, the bank continued to report healthy year-on-year growth in advances and CASA deposits. Investors will closely monitor future lending momentum and deposit mobilisation in the coming quarters.
The shares of Union Bank of India witnessed a sharp fall on Friday, July 3, following the release of the provisional performance report by the bank for the quarter ended June 30, 2026. The stock fell sharply from the opening levels and became the biggest loser in the Bank Nifty index, extending its loss-making streak for two sessions in a row.
Union Bank Share Price Performance
At 10:50 am, the stock price of Union Bank of India was trading at ₹163.05, down from ₹174.35 in its previous close. In the course of trading, the stock reached an intraday low of ₹161.60, indicating a fall of approximately 7.31% from its previous close.
Though there is significant intraday fall, the long-term performance of the stock seems to be quite steady. So far this year, the stock has registered a gain of 6.24%, whereas during the last year, it has made a gain of 7.63%.
Union Bank Business Update Triggers Weak Sentiment
The sell-off in the share price came after the quarterly business update of the bank that showed signs of moderation in the credit growth and deposit pressure in a sequential comparison. Even though most of the business measures were showing growth on a year-on-year comparison basis, the market took the news negatively because of the moderating growth momentum.
As per the bank’s results, there was a moderation in credit growth, with momentum slowdown in areas like Retail, Agriculture, and MSME lending collectively called RAM lending.
In addition to this, there was a fall in deposit growth on a quarter-on-quarter basis, which the bank said was due to the cut-throat competition for deposits within the industry.
Union Bank Credit and Deposit Growth Trends
From a yearly perspective, Union Bank of India has been consistently recording good performance in terms of its core banking parameters. Total gross advances have seen an increase of 12.50% till June 30, 2026, suggesting consistent lending activities.
The advances within the country have been recorded at 13.11%, whereas the RAM advances within the country have witnessed a rise of 11.56%. From the point of view of liabilities, there has been an excellent year-on-year performance of CASA deposits within the country of 11.72%.
About Union Bank of India
Incorporated in 1919, Union Bank of India is one of the largest public sector banks in India. As of March 31, 2026, the bank operated a wide distribution network comprising 8,697 branches and 8,656 ATMs across the country, highlighting its extensive retail and banking presence.
Conclusion
The steep fall in the share price of the Union Bank on July 3 was mainly attributed to issues related to moderation in credit growth and sequential deposit pressures seen in the Q1 business update of the bank. The bank, however, shows consistent growth on a yearly basis in its advances and CASA deposits.
