Finance Desk – Union Bank of India saw its share price drop by 6% on Wednesday (July 9), touching ₹141.54 during intraday trading. The fall came after the bank released its Q1 FY26 business update, which showed a quarter-on-quarter (QoQ) decline in both deposits and loans.
Key Highlights from the Update:
Global Gross Advances (total loans) stood at ₹9.74 lakh crore
Down 0.85% QoQ
Up 6.83% year-on-year (YoY)
Domestic Advances at ₹9.38 lakh crore
Down 0.83% QoQ
Up 6.75% YoY
Retail, Agriculture & MSME (RAM) portfolio: ₹5.45 lakh crore
Up 2.5% QoQ
Up 10.31% YoY
Retail Advances alone grew to ₹2.29 lakh crore
Up 5.63% QoQ
Up 25.60% YoY
So, while overall lending dipped slightly, the bank showed strong growth in the retail segment, pointing to a strategic shift towards retail and MSME loans.
Deposits Overview:
Domestic Deposits: ₹12.39 lakh crore
Down 2.54% QoQ
Up 3.62% YoY
CASA Deposits (low-cost current and savings accounts): ₹4.03 lakh crore
Down 5.43% QoQ
Total Business of the bank grew to ₹22.14 lakh crore
Up 5.01% YoY
Fundraising Plans
To support future growth, the bank plans to raise ₹6,000 crore:
₹3,000 crore through equity (via public offer, rights issue, QIP, etc.)
₹3,000 crore through bonds:
₹2,000 crore via Additional Tier-1 (AT-1) bonds
₹1,000 crore via Tier-2 bonds, possibly in foreign currency
What Experts Say
Drumil Vithlani, Technical Analyst at Bonanza, said the stock is moving sideways in a ₹159–₹138 range.
The RSI (Relative Strength Index) is below the midpoint, suggesting weak momentum.
Traders holding positions should use a stop-loss below ₹138
New trades should wait for a clear breakout above or below this range
