Strong Rally Amid Market Volatility
Today, Union Bank of India’s stock price reached Rs.203.4, surpassing its previous 52-week high and continuing its upward trajectory. The stock has recorded gains for two consecutive sessions, delivering a cumulative return of 1.83% over this period. This outperformance is notable given the broader market context, where the Sensex declined by 0.61% to close at 81,749.54 points after a flat opening.
The bank’s shares outperformed its sector by 1.03% today, signalling relative strength within the public sector banking space. Furthermore, Union Bank is trading above all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — indicating a sustained positive trend and strong technical support.
Exceptional One-Year Performance
Over the past year, Union Bank of India has delivered an impressive total return of 75.96%, significantly outpacing the Sensex’s modest 9.57% gain during the same period. The stock’s 52-week low stood at Rs.107.6, highlighting the substantial appreciation in value over the last twelve months. This performance places the bank among the top performers in the public sector banking industry and the broader large-cap universe.
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Robust Financial Metrics Underpinning Growth
Union Bank’s strong market performance is supported by solid financial fundamentals. The bank’s net profit has grown at a compound annual growth rate (CAGR) of 63.27%, reflecting healthy long-term profitability. In the most recent quarter, the gross non-performing assets (NPA) ratio stood at a low 3.06%, while net NPA was an even more impressive 0.51%, indicating effective asset quality management.
The bank’s credit-deposit ratio reached a high of 81.03% in the half-year period, demonstrating efficient utilisation of deposits for lending activities. Additionally, the provision coverage ratio of 76.68% highlights prudent provisioning practices, cushioning the bank against potential credit risks.
Valuation and Market Standing
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 company’s PEG ratio of 0.7 suggests that its earnings growth is favourably priced into the current share price.
Institutional investors hold a significant 20.04% stake in the bank, reflecting confidence from entities with extensive analytical resources. The stock is also highly rated by MarketsMojo, with a Mojo Score of 81.0 and a Mojo Grade upgraded to Strong Buy on 2 February 2026, from a previous Buy rating. It ranks among the top 1% of all 4,000 stocks rated by MarketsMojo, positioned fourth among large-cap stocks and 29th across the entire market.
Market Context and Sector Comparison
While the broader Sensex index has been under pressure, trading below its 50-day moving average, Union Bank’s stock has demonstrated resilience and outperformance. The Sensex’s 50-day moving average remains above its 200-day moving average, indicating a longer-term positive trend despite recent volatility.
Within the public sector banking sector, Union Bank’s performance stands out, supported by its strong fundamentals and consistent growth. The bank’s ability to maintain low NPAs and high provisioning coverage has contributed to its robust credit profile and investor confidence.
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Consistent Long-Term Outperformance
Union Bank of India’s market gains are not limited to the past year. The stock has outperformed the BSE500 index over the last three years, one year, and three months, demonstrating sustained market-beating returns. This consistent performance reflects the bank’s strong operational execution and favourable market positioning within the public sector banking segment.
Return on assets (ROA) stands at a healthy 1.2%, underscoring efficient utilisation of assets to generate profits. This metric, combined with the bank’s valuation and growth profile, positions Union Bank as a notable large-cap stock within the Indian banking sector.
Summary of Key Metrics
To summarise, Union Bank of India’s recent rise to Rs.203.4 marks a significant milestone, supported by:
- One-year return of 75.96% versus Sensex’s 9.57%
- Strong provisioning with a coverage ratio of 76.68%
- Low gross and net NPAs at 3.06% and 0.51% respectively
- Robust net profit CAGR of 63.27%
- Credit-deposit ratio at 81.03%
- Price-to-book value of 1.2 and PEG ratio of 0.7
- High institutional holdings at 20.04%
- Mojo Score of 81.0 and upgraded Mojo Grade to Strong Buy
These factors collectively underpin the stock’s strong momentum and market recognition as it reaches this new 52-week high.
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