Union Bank of India Hits New 52-Week High at Rs.202.5

Stock Performance and Market Context

On 25 Feb 2026, Union Bank of India’s stock surged to Rs.202.5, surpassing its previous highs and setting a fresh 52-week peak. This marks a remarkable increase from its 52-week low of Rs.107.6, representing a gain of nearly 88.2% over the period. The stock has outperformed its sector peers and the broader market, with a four-day consecutive gain contributing to a 6.55% return in that short span alone.

In comparison, the Sensex, India’s benchmark index, has risen by 11.12% over the past year, while Union Bank of India has delivered a stellar 74.51% return. On the day of the new high, the stock outperformed the public sector banking sector by 0.36%, underscoring its relative strength amid a broadly positive market environment. The Sensex itself opened 304.20 points higher and closed up 344.74 points at 82,874.86, a 0.79% gain, signalling a generally bullish sentiment in the market.

Technical Indicators Confirm Uptrend

Technical analysis supports the stock’s upward trajectory, with Union Bank of India trading above all key moving averages — the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This alignment of moving averages is a classic indicator of sustained bullish momentum. The stock’s day change of 0.67% on the day of the new high further highlights steady buying interest and price strength.

Strong Financial Fundamentals Underpinning the Rally

Union Bank of India’s recent price appreciation is supported by solid financial metrics that highlight the bank’s operational strength and prudent risk management. The bank’s provision coverage ratio stands at a robust 76.68%, indicating a conservative approach to managing potential credit losses. This is complemented by a gross non-performing asset (NPA) ratio of 3.06%, one of the lowest in the sector, and a net NPA ratio of just 0.51%, reflecting effective asset quality control.

Credit growth is also healthy, with the bank’s credit-deposit ratio reaching 81.03% in the half-year period, signalling efficient utilisation of deposits for lending activities. Net profit growth has been impressive, with a compound annual growth rate (CAGR) of 63.27% over the long term, and a 12.6% increase in profits over the past year. These figures underscore the bank’s ability to generate sustainable earnings growth.

Valuation and Institutional Confidence

Union Bank of India’s valuation metrics further reinforce its appeal. The stock trades at a price-to-book value of 1.2, which is considered attractive relative to its peers and historical averages. The price/earnings to growth (PEG) ratio of 0.7 suggests that the stock is reasonably valued given its earnings growth prospects.

Institutional investors hold a significant 20.04% stake in the bank, reflecting confidence from entities with extensive resources and analytical capabilities. This level of institutional ownership often correlates with greater market stability and informed price discovery.

Market Recognition and Ratings

Union Bank of India is highly rated by MarketsMojo, with a Mojo Score of 81.0 and a Mojo Grade of Strong Buy, upgraded from Buy on 2 Feb 2026. The bank ranks among the top 1% of all 4,000 stocks rated by MarketsMojo, positioned 4th among large caps and 27th across the entire market. This recognition reflects the bank’s strong fundamentals, consistent performance, and favourable valuation metrics.

Long-Term Market-Beating Performance

Union Bank of India’s stock has demonstrated market-beating returns not only in the past year but also over longer periods. It has outperformed the BSE500 index over the last three years, one year, and three months, highlighting consistent strength across multiple time frames. This sustained outperformance is a testament to the bank’s robust business model and effective execution.

The bank’s market capitalisation grade is rated 1, indicating a strong position within its sector and the broader market. This, combined with the stock’s recent price momentum, positions Union Bank of India as a notable performer in the public sector banking industry.

Summary of Key Metrics

To summarise, Union Bank of India’s key financial and market metrics as of 25 Feb 2026 are:

• New 52-week high price: Rs.202.5
• 52-week low price: Rs.107.6
• One-year return: 74.51%
• Provision Coverage Ratio: 76.68%
• Gross NPA (Quarterly): 3.06%
• Net NPA (Quarterly): 0.51%
• Credit Deposit Ratio (Half Year): 81.03%
• Net Profit CAGR (Long Term): 63.27%
• Price to Book Value: 1.2
• PEG Ratio: 0.7
• Institutional Holdings: 20.04%
• Mojo Score: 81.0 (Strong Buy)
• Market Cap Grade: 1

The stock’s recent price action and fundamental strength have combined to propel it to this new high, reflecting a period of sustained growth and market confidence.

Sector and Market Environment

The public sector banking sector has seen positive momentum, with mega-cap stocks leading the broader market rally. The Sensex, while trading below its 50-day moving average, maintains a positive trend with the 50-day average above the 200-day average, signalling a constructive medium-term outlook for Indian equities. Union Bank of India’s outperformance within this context highlights its relative strength and resilience.

Conclusion

Union Bank of India’s achievement of a new 52-week high at Rs.202.5 marks a significant milestone in its market journey. Supported by strong financials, prudent risk management, and favourable technical indicators, the stock’s rally reflects a well-founded upward momentum. Its market-beating returns over the past year and longer periods underscore the bank’s robust position within the public sector banking industry.

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