Union Bank of India share price in focus: Shares of Union Bank of India fell 6% during Wednesday’s intraday trading session on July 09, reaching to ₹141.54, following the release of its Q1FY26 business update, which showed a quarter-on-quarter (QoQ) decline in both deposits and loan growth.

In a filing to the exchanges on Tuesday, the public sector lender reported a 0.85% QoQ drop in global gross advances to ₹9.74 lakh crore, though it reflected a 6.83% year-on-year (YoY) improvement. Domestic advances stood at ₹9.38 lakh crore, down 0.83% QoQ but up 6.75% YoY.

Meanwhile, the bank’s domestic RAM portfolio stood at ₹5.45 lakh crore as of June 30, 2025, marking a 2.5% increase over the previous quarter and a strong 10.31% growth compared to the same period last year. Within the RAM segment, retail advances showed particularly robust momentum, rising 5.63% sequentially and 25.60% year-on-year to ₹2.29 lakh crore.

While overall domestic advances slightly declined QoQ, strong growth in retail lending and the broader RAM segment indicates a strategic focus shift toward retail and MSME segments, which helped offset weakness in other lending categories.

Domestic deposits declined 2.54% QoQ to ₹12.39 lakh crore, while improving 3.62% YoY. Domestic CASA deposits fell 5.43% QoQ to ₹4.03 lakh crore. The total business of the bank grew 5.01% YoY to ₹22.14 lakh crore.

Recent Developments

The lender announced plans to raise ₹6,000 crore through a mix of equity and debt to fund its business growth. The decision was disclosed in a regulatory filing made on June 25.

According to the filing, the board approved raising equity capital not exceeding ₹3,000 crore in one or more tranches through a public issue (further public offer), rights issue, private placements, including qualified institutional placements (QIP), or a combination of these methods. The move is subject to approvals from the government, relevant regulatory authorities, and the bank’s shareholders.

Additionally, the board approved a proposal to raise funds via Basel III-compliant bonds—specifically, Additional Tier-1 (AT-1) bonds not exceeding ₹2,000 crore and Tier-2 bonds not exceeding ₹1,000 crore, which may include foreign currency-denominated issuances.

Is more downside likely for the stock?

Drumil Vithlani, Technical Research Analyst at Bonanza, said, “Union Bank of India is currently consolidating within a defined range of ₹159– ₹138, indicating a sideways trend in the near term. Until a decisive breakout on either side occurs, the view remains range-bound.”

“From an indicator perspective, the Relative Strength Index (RSI) is trading below the midpoint, signaling a lack of directional momentum. Traders holding positions may consider maintaining them with a strict stop loss below ₹138, while fresh directional trades should be avoided unless the range is breached decisively,” he further added.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.