Mumbai: State-owned Union Bank of India reported a healthy business performance for the quarter ended June 30, 2026, with Global Gross Advances rising 12.50% year-on-year (YoY) to ₹10,96,331 crore, according to its latest regulatory filing. The bank also crossed the ₹23.79 lakh crore milestone in total global business, reflecting steady growth across key banking segments.
Despite the strong operational performance, the bank’s shares came under selling pressure on Friday, with investors reacting cautiously to the June quarter business update.
Global Business Crosses ₹23.79 Lakh Crore
Union Bank’s Global Business increased 7.46% YoY to ₹23,79,696 crore, compared with ₹22,14,422 crore in the corresponding quarter last year.
Meanwhile, Global Deposits grew 3.50% YoY to ₹12,83,365 crore, while Domestic Deposits also registered a 3.49% YoY increase to ₹12,82,770 crore, highlighting stable deposit mobilisation.
Read also: Union Bank of India Approves ₹8,000 Crore Capital Raising Plan via Equity and Basel III Bonds
Domestic Advances Continue to Drive Growth
The bank’s domestic lending business remained the primary growth engine during the quarter.
- Domestic Advances rose 13.11% YoY to ₹10,61,128 crore, up from ₹9,38,098 crore a year ago.
- Global Gross Advances stood at ₹10,96,331 crore, registering 12.50% YoY growth.
The strong expansion in domestic credit reflects healthy loan demand across retail, agriculture and business segments.
RAM Advances Show Healthy Double-Digit Growth
Union Bank continued to strengthen its diversified lending portfolio with steady growth in Retail, Agriculture and MSME (RAM) advances.
The bank’s RAM Advances increased 11.56% YoY to ₹6,08,095 crore, indicating sustained demand from retail borrowers, farmers and small businesses.
The growth highlights the bank’s continued focus on expanding its presence in India’s retail and commercial lending markets.
Domestic CASA Deposits Rise Nearly 12%
The bank also reported strong growth in low-cost deposits.
- Domestic CASA Deposits increased 11.72% YoY to ₹4,50,220 crore, compared with ₹4,03,003 crore in the year-ago period.
- The Domestic CASA Ratio improved to 35.10%, up from 32.51% last year, representing an increase of 259 basis points (bps).
A higher CASA ratio helps banks lower their cost of funds and supports profitability over the long term.
Credit-to-Deposit Ratio Improves Significantly
Union Bank demonstrated better capital utilisation during the quarter, with a sharp improvement in its Credit-to-Deposit (CD) ratio.
- Domestic CD Ratio (excluding bank deposits) increased 714 bps YoY to 83.38%, compared with 76.24% in June 2025.
- Domestic CD Ratio (including bank deposits) rose 704 bps YoY to 82.72%.
- On a sequential basis, the domestic CD ratio improved by over 298 bps during the April-June quarter.
The higher CD ratio indicates more efficient deployment of deposits into lending activities.
Key Business Performance (June 30, 2026)
- Global Business: ₹23,79,696 crore (June 30, 2026) vs ₹22,14,422 crore (June 30, 2025), up 7.46% YoY
- Global Gross Advances: ₹10,96,331 crore vs ₹9,74,489 crore, up 12.50% YoY
- Global Deposits: ₹12,83,365 crore vs ₹12,39,933 crore, up 3.50% YoY
- Domestic Deposits: ₹12,82,770 crore vs ₹12,39,506 crore, up 3.49% YoY
- Domestic CASA Deposits: ₹4,50,220 crore vs ₹4,03,003 crore, up 11.72% YoY
- Domestic CASA Ratio: 35.10% vs 32.51%, up 259 basis points (bps) YoY
Union Bank Share Price Falls After Business Update
Despite reporting healthy business growth, Union Bank of India shares declined sharply during Friday’s trading session.
The stock fell as much as 7.3% to an intraday low of ₹161.60 on the NSE, a day after the bank released its June quarter business update.
By 11:00 AM, the stock recovered part of its losses and was trading 3.8% lower at ₹162.90, with trading volume of nearly 21.28 million shares.
During the same period:
- Nifty 50 gained 0.7%.
- Nifty Next 50 traded largely flat.
- Nifty PSU Bank Index declined 1.2%.
Stock Performance
Union Bank’s stock has delivered mixed returns over different time frames.
- Down 6.5% over the past one week.
- Up 6.3% on a year-to-date (YTD) basis.
- 52-week high: ₹205.49 (February 27, 2026).
- 52-week low: ₹124.64 (August 29, 2025).
In comparison, the Nifty Next 50 Index has gained 4% on a YTD basis.
Market Expert Sees Near-Term Consolidation
According to Kranthi Bathini, Director – Equity Strategy at WealthMills Securities, the decline in the stock was driven by investor expectations, as the business update was perceived to be lower than anticipated by the market.
He added that PSU banking stocks are likely to remain in a consolidation phase ahead of the Q1 FY27 financial results, with investors closely watching earnings and asset quality trends.
About Union Bank of India
Union Bank of India is one of India’s leading public sector banks, offering a wide range of banking and financial services across retail, corporate, agriculture and MSME segments. Headquartered in Mumbai, the bank has a strong nationwide presence with thousands of branches and digital banking channels, serving millions of customers. It continues to focus on expanding its loan portfolio, improving deposit mobilisation, strengthening digital banking capabilities and supporting India’s economic growth through inclusive financial services.
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