Union Bank of India

Union Bank of India is one of the country’s largest government-owned banks, with its headquarters in Mumbai. Founded in 1919, it has grown rapidly, especially after merging with Andhra Bank and Corporation Bank in 2020. Today, Union Bank of India serves over 153 million customers through a wide network of more than 8,600 branches and nearly 9,000 ATMs across India. The bank provides a full range of financial services, including savings and current accounts, loans, credit cards, and digital banking solutions for both individuals and businesses. It also has an international presence with branches in Dubai and Sydney, a subsidiary in the UK, and a joint venture in Malaysia.

Company Insights
The company has a market capitalization of 1,10,657 crores
The share price of the company is 145
The book value of the company is 149
The company's debt-to-equity ratio is 11.8
The company's annual dividend yield is 2.48%
The company's stock P/E is 6.14
The earnings per share are 23.6
The company's ROCE is 6.72%

Financial Report
The company's sales in the last 5 years
Sales in 2021 is 69,311 crores
Sales in 2022 is 68,230 crores
Sales in 2023 is 81,163 crores
Sales in 2024 is 1,00,376 crores
Sales in 2025 is 1,08,417 crores

The company's profit in the last 5 years
Profit in 2021 is 2,863 crores
Profit in 2022 is 5,265 crores
Profit in 2023 is 8,512 crores
Profit in 2024 is 13,797 crores
Profit in 2025 is 18,027 crores

Sales & Profit Growth
The company's sales growth in the last 5 years
Sales growth in the last 5 years is 23.7%
Sales growth in the last 3 years is 16.7%
Sales growth in the last 1 year is 8.01%

The company's profit growth in the last 5 years
Profit growth in the last 5 years is 50.7%
Profit growth in the last 3 years is 50.7%
Profit growth in the last 1 year is 30.7%

Holdings
Promoters are 74.76%
FIIs are 7.11%
DIIs are 11.63%
Public are 6.50%

Company News

Union Bank of India recently implemented a significant reduction in its lending rates following the Reserve Bank of India’s (RBI) repo rate cut of 50 basis points. Effective from June 11, 2025, the bank lowered its External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 0.50%, bringing the EBLR down to 8.25%. This move aims to reduce borrowing costs for both new and existing retail and MSME customers, including home, vehicle, and personal loans, aligning the bank’s rates with the RBI’s monetary policy to support credit growth and economic activity.

In parallel, Union Bank of India announced the completion of tenure of its Managing Director and CEO, Ms. A. Manimekhalai, on June 2, 2025. This leadership transition marks a new chapter for the bank as it continues to focus on expanding its loan book and improving asset quality. The bank reported a strong financial performance for the March quarter, with a 50% year-on-year rise in net profit to ₹4,985 crore, driven by higher non-interest income and lower provisions. Despite some pressure on net interest margins due to rate cuts, the bank’s credit growth remains healthy, especially in retail loans and MSME segments.

Technical Analysis

Company Chart

Moving Averages (MA)

• The stock price is above the 50-MA, which indicates that the stock is in a bullish trend.

• The stock price is above the 200-MA, which also indicates that the stock is in a bullish trend.

Relative Strength Index (RSI)

The current RSI of the stock is 52, which indicates that the stock is neither in the overbought nor in the oversold zone.

My Analysis

The company's sales and profits are growing every year. After the RBI repo rate cut, banks can offer loans at lower interest rates to their clients. The stock price of the company seems to be in a bullish trend.