Union Bank shares dive 6% after Q4 business update. Key details

Shares of Union Bank of India Ltd slumped 5.79 per cent in Friday's trade to hit a low of Rs 123.75. The sharp fall came after the PSU lender disclosed its March 2025 quarter (Q4 FY25) business updates. During the quarter under review, Union Bank said its total advances crossed Rs 9.82 lakh crore, up 8.62 per cent year-on-year (YoY).

Total domestic RAM advances of the lender stood at Rs 5.34 lakh crore, a YOY increase of 10.63 per cent. The bank's total domestic retail advances grew by 22.14 per cent to Rs 2.17 lakh crore.

The domestic current account and savings account (CASA) deposit stood at Rs 4.26 lakh crore, marking an uptick of 3.94 per cent YOY. Domestic retail advances jumped 22.14 per cent YoY to Rs 2.16 crore.

On BSE, Union Bank shares witnessed heavy trading volume as around 8.02 lakh shares were last seen changing hands. The figure was higher than the two-week average volume of 3.30 lakh shares. Turnover on the counter came at Rs 10.34 crore, commanding a market capitalisation (m-cap) of Rs 94,733.05 crore.

Technically, the scrip traded lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 55.20. A level below 30 is defined as oversold while a value above 70 is considered overbought.

"Investors can buy Union Bank shares in the Rs 124-120 range, keeping a stop loss of Rs 113. The stock is indicating an upside of Rs 140-146 levels. The holding period is 3 to 4 weeks," Axis Securities said.

The stock has a price-to-equity (P/E) ratio of 5.81 against a price-to-book (P/B) value of 0.89. Earnings per share (EPS) stood at 21.37 with a return on equity (RoE) of 15.24. According to Trendlyne data, Union Bank has a one-year beta of 1.7, indicating high volatility.

As of December 2024, the government held a 74.76 per cent stake in the state-owned lender.