Union Bank of India stock drops 3% post Q1 results: Buy, sell or hold?

At 12:25 AM, shares of Union Bank of India were trading at ₹143.10, down by 2.19 per cent on the National Stock Exchange.

Union Bank of India share price today: Shares of the public sector lender, Union Bank of India, experienced a decline of 3 per cent on Monday, July 21, 2025, logging an intraday low of ₹141 after announcing results for the first quarter of the financial year 2025-2026 (Q1FY26).

At 12:25 PM, shares of Union Bank of India were trading at ₹143.10, down by 2.19 per cent on the National Stock Exchange. In comparison, NSE Nifty was trading in the green territory, up by 80 points or 0.32 per cent, quoting 25,047 level. At the time of writing this report, around 14.9 million shares had changed hands on the counter, collectively, on the NSE and BSE.

 

Union Bank of India Q1FY26 Earnings

The bank reported a decent rise of 11.8 per cent in the net profit figure to ₹4,116 crore in Q1FY26, as compared to ₹3,679 crore reported in the corresponding period of the previous fiscal year. However, net interest income (NII) stood at ₹9,113 crore, marking a decline of 3.18 per cent from ₹9,412 crore reported in Q1FY25. The lender's net interest margins also took a hit, declining to 2.76 per cent during the quarter under review, from 3.05 per cent reported in the same period of the previous financial year.

On the asset quality front, gross non-performing assets (NPA) decreased 102 basis points (bps) on year-on-year (Y-o-Y) basis to 3.52 per cent. Meanwhile, net NPA reduced by 28 bps on Y-o-Y basis to 0.62 per cent during the quarter ending June 30, 2025. Check List of Q1 results today

Should you buy or sell?

Motilal Oswal Financial Services has downgraded the stock to 'Neutral' with an unchanged target price of ₹155. The brokerage firm is estimating weak margins ahead, alongside slow business growth. "Union Bank of India reported in-line earnings, supported by a lower tax rate, although pre-provision operating profit (PPoP) missed our estimates. Business growth remained sluggish, with muted quarter-on-quarter (Q-o-Q) trends in both advances and deposits, while the CASA mix declined," the brokerage firm said in its report.

"On Technical Charts, the stock is trading within a symmetrical triangle pattern on daily chart. Strong support is at 140 which can trigger fresh buying with immediate hurdle at 150 for upside. The price is trading below 50-Day moving average indicating selling pressure from higher levels. Share prices has rallied nearly 40 per cent in last two months after which it has been facing neutral zone within 140-155 levels. Overall outlook remains sideways for now, where investors should approach the stock cautiously with the given levels," said Ravi Singh, SVP-retail research. Singh has maintained a 'Hold' rating on the stock.