Union Bank shares slump 6% on weak sequential growth; analysts flag bearish trend

Shares of Union Bank of India slipped sharply in Wednesday's trade after the lender reported a sequential decline across key operational parameters for the June 2025 quarter. The stock dropped 5.59 per cent to hit a day low of Rs 141.85, reacting to weak quarter-on-quarter (QoQ) performance despite registering year-on-year (YoY) growth in its loan book.

The public sector bank's total business as of June 30, 2025, stood at Rs 22.14 lakh crore, marking a 1.80 per cent drop from Rs 22.55 lakh crore in the March quarter. Global deposits declined by 2.54 per cent sequentially to Rs 12.40 lakh crore. Domestic CASA (current and savings account) deposits fell by 5.43 per cent, raising concerns about the bank’s low-cost deposit base.

On the lending front, global gross advances stood at Rs 9.75 lakh crore, down 0.85 per cent QoQ, while domestic advances also saw a marginal dip of 0.83 per cent.

A few analysts expressed caution over the stock's near-term trajectory. Ravi Singh, Senior Vice-President of Retail Research at Religare Broking, noted that the stock looks technically weak and may slide further towards Rs 135, with immediate resistance seen at Rs 149.

AR Ramachandran, a Sebi-registered independent analyst, said the stock is showing bearish signs on the daily chart, with strong resistance at Rs 150.2. “A daily close below Rs 139.45 may push the stock down to Rs 131,” he added.

Meanwhile, Drumil Vithlani, Technical Analyst at Bonanza Portfolio, said the stock is currently consolidating within a narrow range of Rs 159–138. "A decisive breakout on either side is awaited. Traders should maintain strict stop losses below Rs 138 and avoid fresh trades until the range is breached," he advised.

As per the latest available data, the government held a 73.01 per cent stake in Union Bank.