Union Bank Shares Drop 9% Following Lackluster Q4 Performance
Union Bank shares fall 9% after Q4 results; weak NII, higher slippages hit
Business Standard
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Union Bank of India shares fell nearly 9% on the Bombay Stock Exchange after reporting a muted Q4FY26, with net profit increasing only 6.6% year-on-year. Weak net interest income and higher slippages contributed to the decline, despite improvements in asset quality.
- 01Union Bank's shares dropped nearly 9% after Q4FY26 results.
- 02Net profit rose to ₹5,316 crore, a 6.6% year-on-year increase.
- 03Net interest income fell by 1.14% year-on-year to ₹9,406 crore.
- 04Gross non-performing assets decreased to ₹30,401 crore.
- 05The bank's provisions rose to ₹2,640 crore, indicating higher risk.
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Union Bank of India experienced a nearly 9% drop in its share price on the Bombay Stock Exchange following the release of its Q4FY26 results. The bank reported a net profit of ₹5,316 crore, reflecting a 6.6% year-on-year increase but showing minimal growth compared to the previous quarter. This muted performance was primarily driven by a decline in net interest income (NII), which fell 1.14% year-on-year to ₹9,406 crore. The bank's net interest margin (NIM) also decreased to 2.64%, down from 2.76% in the previous quarter. Despite these challenges, Union Bank improved its asset quality, with gross non-performing assets (GNPAs) declining to ₹30,401 crore from ₹31,121 crore in the prior quarter. However, the bank's provisions increased to ₹2,640 crore, indicating a rise in potential loan defaults. The bank's loan growth stood at 9.74% year-on-year, driven mainly by retail and MSME segments, while total deposits grew by only 2.7% year-on-year.
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The decline in Union Bank's share price may affect investor confidence and could lead to higher borrowing costs for customers if the bank tightens lending due to increased provisions.
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