Shares of PSU lender Union Bank of India fell over 5 percent on April 4 after its 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 grew 8.6 percent to cross Rs 9.82 crore by the end of March quarter of FY25, however, this is lower than the 11-13 percent loan growth guidance stated earlier by the lender.
Union Bank’s total deposits also fell below its guidance levels. The lender had estimated that total deposits would grow 9-11 percent in Q4FY25, however, the bank reported a 7.22 percent growth in its total global deposits, despite a decline on April 4.
Shares of the PSU lender have gained over 10 percent in the past one month, shrugging off volatility around US President Trump’s tariff announcement.
In January 2025, Union Bank had reported a 28.2 percent year-on-year rise 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 rise was led by lower provisions and higher-than-expected other income. Asset quality also improved as the gross non-performing asset (GNPA) ratio declined to 3.85 percent in the December quarter from 4.36 percent in the September quarter, while the net NPA ratio declined to 0.82 per cent from 0.98 percent on a sequential basis.
