Union Bank shares slip 4% after Q1 profit rises 12% YoY but NII declines

Union Bank of India shares declined nearly 4% to Rs 140.80 in Monday’s trade on the BSE after the state-owned lender reported a 12% year-on-year rise in net profit to Rs 4,115.5 crore for the first quarter of FY26, compared to Rs 3,679 crore in the same period last year.

Total income rose to Rs 31,791 crore in the June quarter from Rs 30,874 crore a year ago. However, net interest income (NII) declined 3.2% year-on-year to Rs 9,112.6 crore from Rs 9,412 crore.

The bank’s total business grew by 5% to Rs 22.14 lakh crore, up from Rs 21.08 lakh crore at the end of June 2024.


Provisions and contingencies increased to Rs 1,664.5 crore in Q1 FY26 from Rs 1,543.9 crore in the March quarter. Provisions for non-performing assets (NPAs), however, fell to Rs 1,152 crore from Rs 1,675.7 crore in Q4 FY25.

Last month, the lender reduced its lending rates by 50 basis points, aligning with broader moderation by the Reserve Bank of India. The revision covered both the external benchmark lending rate (EBLR) and the repo-linked lending rate (RLLR), benefiting retail and MSME borrowers.

Union Bank share price target

According to Trendlyne, the average target price for Union Bank shares is Rs 152, implying a potential upside of nearly 7% from current levels. Of the 13 analysts tracking the stock, the consensus rating is ‘Buy’.

Technically, the stock is in a neutral trend. The Relative Strength Index (RSI) stands at 49.1, indicating balanced momentum. The MACD is at 1, above the center line but below the signal line.

Year-to-date, Union Bank shares have gained 15%, and are up 30% over the past six months. The bank's market capitalisation currently stands at Rs 1.08 lakh crore.

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