Shares of Union Bank of India dropped another 2% on Friday, extending losses to 10% over two days after releasing its results for the fourth quarter of the financial year 2026, which disappointed brokerages. Provisions surged to Rs 1,055 crore from Rs 322 crore in the December quarter, marking a nearly three-fold increase. Despite improved asset quality, with the gross NPA ratio declining to 2.82% and the net NPA ratio easing to 0.48%, analysts remain cautious due to elevated credit costs.
The bank recommended a dividend of Rs 5 per equity share for the financial year 2026, pending necessary approvals. The record date for dividend eligibility has yet to be announced. Union Bank of India reported a modest quarter, with NIM contraction impacting performance, although stronger other income supported an earnings beat. The stock traded at Rs 175.52 apiece on Friday, having fallen around 7% in one month but up 15% in 2026 so far.
