{"id":242036,"date":"2026-09-10T16:47:52","date_gmt":"2026-09-10T11:17:52","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=242036"},"modified":"2026-09-10T16:47:52","modified_gmt":"2026-09-10T11:17:52","slug":"psu-bank-stock-rises-408-percent-in-5-years","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/","title":{"rendered":"This PSU Bank Stock Rises 408% in 5 Years: How a Bad Loan Clean-Up Paid Off"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>CMP approximately Rs 179.20 (10 Sep 2026). 5-year return 407.92%. 52W range Rs 126.61 to Rs 205.49. Market cap Rs 1,40,000 Cr. Q1 FY27 PAT Rs 5,332 Cr, up 29.5%.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">Union Bank of India is the PSU bank stock behind a 5-year return of approximately 408%. Gross NPA fell from 13.74% in March 2021 to 2.65% in June 2026, while annual net profit rose from Rs 2,906 crore to Rs 18,697 crore in FY26. The share trades at a PE near 6.8, but slow deposit growth and thin margins remain key watch points.<\/p>\n<\/div>\n<p>This PSU bank stock has turned Rs 1 lakh into approximately Rs 5.08 lakh in five years. A Mumbai headquartered public sector lender delivered a 5-year return of 407.92%, ranking 21st in a screen of 101 large-cap and mid-cap NSE shares as of 10 September 2026.<\/p>\n<p>The company is <strong><a href='https:\/\/univest.in\/stocks\/unionbank\/union-bank-of-india-share-price-today'>Union Bank of India<\/a> (NSE: UNIONBANK)<\/strong>, one of the largest government-owned banks in the country with a global loan book of around Rs 10.96 lakh crore. The Union Bank of India share price closed near Rs 179.20 on 10 September 2026, down about 2.55% from the previous close of Rs 183.89, and roughly 13% below its 52-week high of Rs 205.49.<\/p>\n<p style=\"margin-top:24px;\"><strong>Click Here &#8211; Get Free Investment Predictions<\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#How_Much_Has_This_PSU_Bank_Stock_Returned\" title=\"How Much Has This PSU Bank Stock Returned?\">How Much Has This PSU Bank Stock Returned?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Why_Did_This_PSU_Bank_Stock_Rise_408_in_5_Years\" title=\"Why Did This PSU Bank Stock Rise 408% in 5 Years?\">Why Did This PSU Bank Stock Rise 408% in 5 Years?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Bad_Loans_Fell_From_1374_to_265\" title=\"Bad Loans Fell From 13.74% to 2.65%\">Bad Loans Fell From 13.74% to 2.65%<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Profit_Multiplied_More_Than_Six_Times\" title=\"Profit Multiplied More Than Six Times\">Profit Multiplied More Than Six Times<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Re-rating_of_the_PSU_Bank_Pack\" title=\"Re-rating of the PSU Bank Pack\">Re-rating of the PSU Bank Pack<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Recent_Drivers_Profit_Growth_and_Fee_Income\" title=\"Recent Drivers: Profit Growth and Fee Income\">Recent Drivers: Profit Growth and Fee Income<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#How_Have_the_Banks_Core_Metrics_Changed\" title=\"How Have the Bank&#8217;s Core Metrics Changed?\">How Have the Bank&#8217;s Core Metrics Changed?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Quarterly_Financial_Trend\" title=\"Quarterly Financial Trend\">Quarterly Financial Trend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Loans_Deposits_and_Margins\" title=\"Loans, Deposits and Margins\">Loans, Deposits and Margins<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Who_Owns_This_PSU_Bank_Stock\" title=\"Who Owns This PSU Bank Stock?\">Who Owns This PSU Bank Stock?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#What_Does_the_Valuation_Look_Like\" title=\"What Does the Valuation Look Like?\">What Does the Valuation Look Like?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#What_Are_the_Risks_for_This_PSU_Bank_Stock\" title=\"What Are the Risks for This PSU Bank Stock?\">What Are the Risks for This PSU Bank Stock?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Union_Bank_of_India_Share_Analyst_View\" title=\"Union Bank of India Share: Analyst View\">Union Bank of India Share: Analyst View<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Union_Bank_of_India_Share_Price_Target\" title=\"Union Bank of India Share Price Target\">Union Bank of India Share Price Target<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Which_PSU_bank_stock_rose_408_in_5_years\" title=\"Which PSU bank stock rose 408% in 5 years?\">Which PSU bank stock rose 408% in 5 years?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Why_did_the_Union_Bank_of_India_share_price_rise_so_much_in_5_years\" title=\"Why did the Union Bank of India share price rise so much in 5 years?\">Why did the Union Bank of India share price rise so much in 5 years?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#What_is_the_Union_Bank_of_India_share_price_today\" title=\"What is the Union Bank of India share price today?\">What is the Union Bank of India share price today?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#What_is_the_Union_Bank_of_India_share_price_target\" title=\"What is the Union Bank of India share price target?\">What is the Union Bank of India share price target?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#How_did_Union_Bank_of_India_perform_in_Q1_FY27\" title=\"How did Union Bank of India perform in Q1 FY27?\">How did Union Bank of India perform in Q1 FY27?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Is_Union_Bank_of_India_share_undervalued\" title=\"Is Union Bank of India share undervalued?\">Is Union Bank of India share undervalued?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#What_are_the_main_risks_for_Union_Bank_of_India\" title=\"What are the main risks for Union Bank of India?\">What are the main risks for Union Bank of India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stock-rises-408-percent-in-5-years\/#Does_Union_Bank_of_India_pay_a_dividend\" title=\"Does Union Bank of India pay a dividend?\">Does Union Bank of India pay a dividend?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_Much_Has_This_PSU_Bank_Stock_Returned\"><\/span><strong>How Much Has This PSU Bank Stock Returned?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This PSU bank stock has returned approximately 408% in five years, but the gains are heavily concentrated in the early part of that window. The 1-year return of 31.37% is healthy yet only mid-table, and the 1-month return of 0.19% ranks near the bottom of the screen.<\/p>\n<p>Here is how the PSU bank stock has performed across time frames, with its rank in a screen of 101 NSE stocks:<\/p>\n<table>\n<thead>\n<tr>\n<th>Period<\/th>\n<th>Return<\/th>\n<th>Rank (out of 101)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1 Month<\/td>\n<td>0.19%<\/td>\n<td>97<\/td>\n<\/tr>\n<tr>\n<td>6 Months<\/td>\n<td>6.93%<\/td>\n<td>84<\/td>\n<\/tr>\n<tr>\n<td>1 Year<\/td>\n<td>31.37%<\/td>\n<td>48<\/td>\n<\/tr>\n<tr>\n<td>3 Years<\/td>\n<td>71.05%<\/td>\n<td>60<\/td>\n<\/tr>\n<tr>\n<td>5 Years<\/td>\n<td>407.92%<\/td>\n<td>21<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The pattern is clear. The 3-year return of 71.05% means most of the five-year wealth creation happened between late 2021 and 2023, when the bank was emerging from a heavy bad loan cycle. Since then, this PSU bank stock has moved in a slower, more earnings-linked way.<\/p>\n<p>There was no stock split or bonus issue in the five-year window, so the 407.92% figure for this PSU bank stock reflects real price appreciation. Working backwards from the current price, the share traded near Rs 35 in September 2021, which matches its trading range at that time.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Did_This_PSU_Bank_Stock_Rise_408_in_5_Years\"><\/span><strong>Why Did This PSU Bank Stock Rise 408% in 5 Years?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The short answer: a deep balance sheet clean-up, a more than six-fold jump in annual profit and a re-rating of government-owned lenders as a group. This PSU bank stock began the period trading well below book value with double-digit bad loans and ended it as a steady, dividend-paying earner.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Bad_Loans_Fell_From_1374_to_265\"><\/span><strong>Bad Loans Fell From 13.74% to 2.65%<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In March 2021, gross NPA stood at 13.74% and net NPA at 4.62%, soon after the merger of Andhra Bank and Corporation Bank into Union Bank. By June 2026, gross NPA had dropped to 2.65% and net NPA to just 0.47%, with a provision coverage ratio of around 95%.<\/p>\n<p>For a PSU bank stock, that clean-up mattered more than anything else. As old stressed loans were recovered or written off, provisions fell sharply and profits could finally flow through to shareholders. The slippage ratio improved to 0.82% in Q1 FY27 from 0.99% a year earlier.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Profit_Multiplied_More_Than_Six_Times\"><\/span><strong>Profit Multiplied More Than Six Times<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Net profit rose from Rs 2,906 crore in FY21 to Rs 5,232 crore in FY22, Rs 17,987 crore in FY25 and a record Rs 18,697 crore in FY26. Return on assets climbed from 0.47% in FY22 to 1.26% in FY25 and 1.36% in Q1 FY27.<\/p>\n<p>For a PSU bank stock, crossing the 1% ROA mark is a meaningful milestone. It signals that the bank earns enough to fund growth from internal accruals, rather than relying on fresh capital from the government.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Re-rating_of_the_PSU_Bank_Pack\"><\/span><strong>Re-rating of the PSU Bank Pack<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Almost every PSU bank stock was deeply out of favour in 2020 and 2021. As bad loans fell across the sector and credit growth picked up, investors re-rated the whole group, and the Nifty PSU Bank index hit fresh record highs, including in January 2026 after strong December quarter results.<\/p>\n<p>Union Bank gained about 8% in a single session in January 2026 after reporting a Q3 FY26 net profit of around Rs 5,017 crore with better asset quality. This PSU bank stock also touched a 52-week high alongside peers such as Bank of Maharashtra, Indian Bank and Bank of India during that phase.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Recent_Drivers_Profit_Growth_and_Fee_Income\"><\/span><strong>Recent Drivers: Profit Growth and Fee Income<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The most recent push for this PSU bank stock came from Q1 FY27 numbers released in July 2026. Standalone net profit rose 29.5% year on year to Rs 5,332 crore, net interest income grew 10.1% to Rs 10,037 crore and fee-based income jumped about 45% to Rs 3,215 crore.<\/p>\n<p style=\"margin-top:24px;\"><strong>Check the Univest Screener for Live Fundamentals of High-Return Stocks<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Have_the_Banks_Core_Metrics_Changed\"><\/span><strong>How Have the Bank&#8217;s Core Metrics Changed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The table below captures the five-year transformation behind this PSU bank stock, using full-year figures for FY21, FY22, FY25 and FY26 and the latest quarter for FY27.<\/p>\n<table>\n<thead>\n<tr>\n<th>Metric<\/th>\n<th>FY21<\/th>\n<th>FY22<\/th>\n<th>FY25<\/th>\n<th>FY26<\/th>\n<th>Q1 FY27<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Net Profit (Rs Cr)<\/td>\n<td>2,906<\/td>\n<td>5,232<\/td>\n<td>17,987<\/td>\n<td>18,697<\/td>\n<td>5,332<\/td>\n<\/tr>\n<tr>\n<td>Gross NPA<\/td>\n<td>13.74%<\/td>\n<td>11.11%<\/td>\n<td>3.60%<\/td>\n<td>2.82%<\/td>\n<td>2.65%<\/td>\n<\/tr>\n<tr>\n<td>Net NPA<\/td>\n<td>4.62%<\/td>\n<td>3.68%<\/td>\n<td>0.63%<\/td>\n<td>0.48%<\/td>\n<td>0.47%<\/td>\n<\/tr>\n<tr>\n<td>NIM<\/td>\n<td>NA<\/td>\n<td>2.94%<\/td>\n<td>2.91%<\/td>\n<td>2.70%<\/td>\n<td>2.80%<\/td>\n<\/tr>\n<tr>\n<td>ROA<\/td>\n<td>NA<\/td>\n<td>0.47%<\/td>\n<td>1.26%<\/td>\n<td>NA<\/td>\n<td>1.36%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Two things stand out for this PSU bank stock. Asset quality has improved every single year, and profit growth has slowed sharply in the last year. FY26 net profit rose only about 3.9%, because margins came under pressure after interest rate cuts and the bank deliberately shed costly bulk deposits.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Quarterly_Financial_Trend\"><\/span><strong>Quarterly Financial Trend<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The quarterly numbers for this PSU bank stock show profit stepping up through FY26 and holding at a higher level in the June 2026 quarter.<\/p>\n<table>\n<thead>\n<tr>\n<th>Quarter<\/th>\n<th>Total Income (Rs Cr)<\/th>\n<th>Net Profit (Rs Cr)<\/th>\n<th>Net Profit Margin<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Jun 2025<\/td>\n<td>31,968<\/td>\n<td>4,137<\/td>\n<td>16.34%<\/td>\n<\/tr>\n<tr>\n<td>Sep 2025<\/td>\n<td>31,755<\/td>\n<td>4,281<\/td>\n<td>16.89%<\/td>\n<\/tr>\n<tr>\n<td>Dec 2025<\/td>\n<td>32,002<\/td>\n<td>5,029<\/td>\n<td>18.91%<\/td>\n<\/tr>\n<tr>\n<td>Mar 2026<\/td>\n<td>32,675<\/td>\n<td>5,334<\/td>\n<td>20.63%<\/td>\n<\/tr>\n<tr>\n<td>Jun 2026<\/td>\n<td>32,660<\/td>\n<td>5,368<\/td>\n<td>20.57%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>For this PSU bank stock, total income has been nearly flat at around Rs 32,000 crore per quarter, so the profit gains came from lower provisions, higher fees and tighter cost control rather than from a big jump in interest earnings. The figures in this table may differ slightly from the reported standalone numbers due to classification.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Loans_Deposits_and_Margins\"><\/span><strong>Loans, Deposits and Margins<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Global advances grew 12.5% year on year to Rs 10.96 lakh crore in June 2026, with domestic advances up 13.1% and retail loans up 12.1%. Retail, agriculture and MSME loans now form the bulk of the domestic book.<\/p>\n<p>Deposits are the weak spot for this PSU bank stock. Global deposits grew only 3.5% to about Rs 12.83 lakh crore, well below the 8% to 9% guidance, though the CASA ratio improved to 35.10% from 32.52%. NIM recovered to 2.80% in Q1 FY27 from 2.64% in Q4 FY26.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Who_Owns_This_PSU_Bank_Stock\"><\/span><strong>Who Owns This PSU Bank Stock?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Government of India holds 74.76% of the bank, a level that has stayed unchanged for several quarters. That keeps this PSU bank stock squarely under state ownership, with the public float at approximately 25%.<\/p>\n<p>Foreign institutions have been adding this PSU bank stock slowly. FII holding rose from about 6.9% in September 2024 to 7.9% in September 2025 and around 8.63% in the latest disclosure. Domestic institutions, led by insurers and mutual funds, hold close to 12%, while retail investors own about 4.63%.<\/p>\n<p>Rising FII interest in a PSU bank stock usually reflects confidence in asset quality and dividend payouts. A limited free float, however, also means large block trades or any future government stake sale can move this PSU bank stock sharply.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Does_the_Valuation_Look_Like\"><\/span><strong>What Does the Valuation Look Like?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Union Bank of India share trades at a PE of around 6.78 against an industry PE of about 12.25, and at approximately 1.06 times book value of Rs 173.63. Return on equity is around 15.57%, and the dividend yield is about 2.73% after a Rs 5 per share dividend for FY26.<\/p>\n<p>A low multiple is common for a PSU bank stock, because investors price in government ownership, slower deposit franchises and the risk of policy-driven lending. The discount this PSU bank stock carries to private banks has narrowed over five years but has not closed.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_the_Risks_for_This_PSU_Bank_Stock\"><\/span><strong>What Are the Risks for This PSU Bank Stock?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The biggest risk for this PSU bank stock is deposit growth. With deposits growing at just 3.5% against loan growth of 12.5%, the bank will need to raise funds at higher cost if the gap persists, which could squeeze margins again.<\/p>\n<p>Second, margins remain thin for a PSU bank stock of this size. A NIM of 2.80% is lower than many peers, and further repo rate cuts could push lending yields down faster than deposit costs. Treasury income also fell about 54.5% year on year in Q1 FY27, showing how volatile non-interest income can be.<\/p>\n<p>Third, profit growth has already slowed. With gross NPA at 2.65% and provisions near 95%, the easy gains from falling credit costs are largely over. Any fresh stress in MSME or unsecured retail loans could hit the Union Bank of India share price quickly.<\/p>\n<p>Finally, government ownership brings its own risks to any PSU bank stock, including possible stake sales, leadership changes and pressure to support policy lending. This PSU bank stock is also sensitive to broader market swings, as the 1-month rank of 97 out of 101 shows.<\/p>\n<p style=\"margin-top:24px;\"><strong>Download the <a href=\"https:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&amp;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track the Union Bank of India share price live<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Union_Bank_of_India_Share_Analyst_View\"><\/span><strong>Union Bank of India Share: Analyst View<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Analysts see Union Bank as a PSU bank stock with steady earnings with a clean balance sheet, but most are cautious about growth from here. The key debates are deposit mobilisation, margin recovery and whether ROA can hold above 1.3%.<\/p>\n<p>For this PSU bank stock, management has guided for credit growth of around 12% to 13% in FY27. If the bank delivers that growth while keeping NIM near 2.8%, earnings can keep rising. If deposits keep lagging, however, this PSU bank stock may stay range-bound.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Union_Bank_of_India_Share_Price_Target\"><\/span><strong>Union Bank of India Share Price Target<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>After the Q1 FY27 results, a foreign brokerage maintained a neutral rating with a Union Bank of India share price target of Rs 195, roughly 9% above the current price of Rs 179.20. This PSU bank stock already touched Rs 205.49 within the last year, so that target sits below the recent peak.<\/p>\n<p>On the downside, the 52-week low of Rs 126.61 marks the lower end of the past year&#8217;s range. Investors tracking the Union Bank of India share price target should watch whether the stock can reclaim the Rs 205 zone on the back of the next set of results.<\/p>\n<p>No Union Bank of India share price target can account for sudden changes in interest rates or asset quality, so any target should be treated as a reference point, not a forecast.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This PSU bank stock rose approximately 408% in five years because the bank cleaned up its loan book, multiplied its profit more than six times and benefited from a sector-wide re-rating. Most of that rally, however, happened in the first half of the window.<\/p>\n<p>Today, the Union Bank of India share price reflects a solid but slower-growing PSU bank stock, trading at around 6.8 times earnings with a 2.73% dividend yield. For this PSU bank stock, the next leg will depend on deposit growth, margin recovery and stable asset quality, so investors should weigh both the value on offer and the growth risks before deciding.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information and may or may not be accurate. Please verify all data independently before making any investment decision. Past returns do not guarantee future returns. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Which_PSU_bank_stock_rose_408_in_5_years\"><\/span><strong>Which PSU bank stock rose 408% in 5 years?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Union Bank of India (NSE: UNIONBANK) is the PSU bank stock that gained approximately 407.92% over five years as of 10 September 2026. It ranked 21st out of 101 large-cap and mid-cap NSE stocks in the 5-year return screen.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_did_the_Union_Bank_of_India_share_price_rise_so_much_in_5_years\"><\/span><strong>Why did the Union Bank of India share price rise so much in 5 years?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The rise came from a sharp fall in bad loans, with gross NPA dropping from 13.74% in March 2021 to 2.65% in June 2026. Net profit grew from Rs 2,906 crore in FY21 to Rs 18,697 crore in FY26, and PSU banks as a group were re-rated.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_Union_Bank_of_India_share_price_today\"><\/span><strong>What is the Union Bank of India share price today?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The Union Bank of India share price closed near Rs 179.20 on 10 September 2026, down about 2.55% for the day. Its 52-week range is Rs 126.61 to Rs 205.49.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_Union_Bank_of_India_share_price_target\"><\/span><strong>What is the Union Bank of India share price target?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> A foreign brokerage maintained a neutral rating with a target of Rs 195 after the Q1 FY27 results. That is about 9% above the current price but below the 52-week high of Rs 205.49.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_did_Union_Bank_of_India_perform_in_Q1_FY27\"><\/span><strong>How did Union Bank of India perform in Q1 FY27?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Standalone net profit rose 29.5% year on year to Rs 5,332 crore, and net interest income grew 10.1% to Rs 10,037 crore. NIM improved to 2.80%, gross NPA fell to 2.65% and ROA stood at 1.36%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_Union_Bank_of_India_share_undervalued\"><\/span><strong>Is Union Bank of India share undervalued?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> It trades at a PE of about 6.78 versus an industry PE of 12.25 and around 1.06 times book value. The discount reflects slower deposit growth, thinner margins and government ownership, so a low multiple alone is not a reason to invest.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_main_risks_for_Union_Bank_of_India\"><\/span><strong>What are the main risks for Union Bank of India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Deposits grew only 3.5% in Q1 FY27 against loan growth of 12.5%, which could raise funding costs. Thin margins, volatile treasury income and possible government stake sales are other key risks.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Does_Union_Bank_of_India_pay_a_dividend\"><\/span><strong>Does Union Bank of India pay a dividend?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Yes. The board recommended a dividend of Rs 5 per share for FY26, which gives a dividend yield of approximately 2.73% at the current price.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Which PSU bank stock rose 408% in 5 years?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Union Bank of India (NSE: UNIONBANK) is the PSU bank stock that gained approximately 407.92% over five years as of 10 September 2026. 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Its 52-week range is Rs 126.61 to Rs 205.49.\"}},{\"@type\":\"Question\",\"name\":\"What is the Union Bank of India share price target?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"A foreign brokerage maintained a neutral rating with a target of Rs 195 after the Q1 FY27 results. That is about 9% above the current price but below the 52-week high of Rs 205.49.\"}},{\"@type\":\"Question\",\"name\":\"How did Union Bank of India perform in Q1 FY27?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Standalone net profit rose 29.5% year on year to Rs 5,332 crore, and net interest income grew 10.1% to Rs 10,037 crore. NIM improved to 2.80%, gross NPA fell to 2.65% and ROA stood at 1.36%.\"}},{\"@type\":\"Question\",\"name\":\"Is Union Bank of India share undervalued?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It trades at a PE of about 6.78 versus an industry PE of 12.25 and around 1.06 times book value. The discount reflects slower deposit growth, thinner margins and government ownership, so a low multiple alone is not a reason to invest.\"}},{\"@type\":\"Question\",\"name\":\"What are the main risks for Union Bank of India?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Deposits grew only 3.5% in Q1 FY27 against loan growth of 12.5%, which could raise funding costs. Thin margins, volatile treasury income and possible government stake sales are other key risks.\"}},{\"@type\":\"Question\",\"name\":\"Does Union Bank of India pay a dividend?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes. The board recommended a dividend of Rs 5 per share for FY26, which gives a dividend yield of approximately 2.73% at the current price.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>One large government-owned lender turned Rs 1 lakh into roughly Rs 5 lakh in five years. Here is what powered the 408% rally and the risks investors should weigh.<\/p>\n","protected":false},"author":29,"featured_media":242033,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[845],"tags":[],"class_list":["post-242036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-best-stocks"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["242033"],"rank_math_title":["PSU Bank Stock Up 408% in 5 Years: What Drove the Rally"],"rank_math_description":["This PSU bank stock rose approximately 408% in 5 years as gross NPA fell from 13.74% to 2.65% and profit grew over six-fold. See returns, financials, target and risks."],"rank_math_focus_keyword":["PSU bank stock"],"rank_math_robots":["a:2:{i:0;s:7:\"noindex\";i:1;s:8:\"nofollow\";}"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2026\/09\/psu-bank-stock-rises-408-percent-in-5-years.png","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/242036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=242036"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/242036\/revisions"}],"predecessor-version":[{"id":242037,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/242036\/revisions\/242037"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/242033"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=242036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=242036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=242036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}