Union Bank Shares Surge 7% as Bond Yields Cool Sharply
Shares of Union Bank of India surged 8% on 8 April after a sharp decline in India’s government bond yields lifted sentiment across PSU lenders. The stock move came as the broader PSU Bank index climbed nearly 5% during Wednesday’s session. In the rally, Bank of Baroda and Bank of... The post Union Bank Shares Surge 7% as Bond Yields Cool Sharply appeared first on Equitypandit.
Shares of Union Bank of India surged 8% on 8 April after a sharp decline in India’s government bond yields lifted sentiment across PSU lenders. The stock move came as the broader PSU Bank index climbed nearly 5% during Wednesday’s session.
In the rally, Bank of Baroda and Bank of India rose between 6% and 7%, while Punjab National Bank and UCO Bank gained up to 6% each. Canara Bank had also risen to 7% on 8 April. All constituents of the PSU Bank index traded higher.
India’s 10-year government bond yield cooled by nearly 15 basis points to 6.9%, improving the valuation outlook for banks with large government securities portfolios. PSU lenders typically hold a major share under Hold-to-Maturity, while a sizable portion sits in Available For Sale, making them sensitive to yield swings.
According to IIFL Capital, a 25 basis points rise in short-term yields can affect profit after tax by 0.1% to 0.7%, while a 50 basis points rise in medium-term yields may impact net worth by 0.3% to 0.6%. There is no related-party transaction in this development.
Union Bank of India reported steady business growth in its latest update, with total business rising 5.04% year-on-year to Rs 22.39 lakh crore as of December 2025. Advances also grew 7.13%, indicating continued traction in lending activity during the period.
In the December quarter, the lender posted a net profit of around Rs 5,070 crore, up by nearly 9.7% year-on-year. Revenue growth remained muted at about 0.8%, a reminder that topline expansion stayed under pressure.
At 2:48 pm, Union Bank shares were trading at Rs 186.75, up by 8.65% on NSE. It stayed close to the day’s high, backed by buying interest across PSU banking stocks.
The future of investing is here!
Tradz by EquityPandit leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app todayand 10x your trading & investing journey!
The post Union Bank Shares Surge 7% as Bond Yields Cool Sharply appeared first on Equitypandit.
What's Your Reaction?
