Mumbai: Union Bank of India Ltd. saw its shares tumble nearly 5 per cent on April 4, following disappointing performance against its loan growth and deposit guidance for the financial year 2025. The stock hit an intraday low of Rs 125.18 and was trading at Rs 125.94, down 4.07 per cent by 11:45 AM.
Missed Loan & Deposit Growth Guidance
Loan Growth: Achieved 8.6 per cent against the targeted 13 per cent.
Deposit Growth: Reported 7.2 per cent, falling short of the 9-11 per cent range.
These figures fell short of both the original and revised guidance for FY 2025, raising concerns among investors.
Quarterly Business Update Highlights
Total Business (Global): Grew 5.9 per cent sequentially and 7.8 per cent YoY to Rs 22.92 lakh crore.
Total Deposits (Global): Increased 7.7 per cent from the previous quarter and 7.2 per cent YoY to Rs 13.1 lakh crore.
CASA Deposits (Domestic): Up 7.8 per cent sequentially and 3.9 per cent YoY to Rs 4.26 lakh crore.
Investor Sentiment & Market Reaction
Despite the quarterly growth, the shortfall in key growth metrics negatively impacted investor sentiment. The stock had gained 11.57 per cent in the past month before this decline, reflecting a volatile investor response.
The missed targets have raised questions about the bank's growth trajectory, affecting its stock performance. Investors are likely awaiting further updates on strategic measures to address these gaps.
