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Union Bank of India Share Target Price 2025-2030: Will This PSU Bank Make You a Millionaire?

Writer: TheTrendTheTrend

Introduction

Union Bank of India (NSE: UNIONBANK) is one of India’s largest public sector banks (PSBs), offering a wide range of financial services. With government backing, digital transformation, and strong credit growth, the bank has been gaining investor interest. But is it a true wealth-builder for 2025 and beyond? Let’s analyze its fundamentals, growth strategy, and stock target price.


Current Fundamental Analysis

Parameter

Value

Current Share Price

₹108.90

Market Cap

₹85,500 Cr

P/E Ratio

5.52

P/B Ratio

0.81

52-Week High/Low

₹172.50 / ₹100.55

Promoter Holding (Govt. of India)

74.87%

FIIs & DIIs Holding

10.5%

Union Bank of India’s stock has seen strong bullish momentum, doubling in the past year. With a low P/E ratio and a solid government backing, it remains a popular pick among long-term investors.




Future Projects & Growth Strategy

  • Credit Growth Acceleration – The bank is focusing on expanding its loan book, particularly in retail and MSME lending.

  • Digital Transformation – Heavy investment in UPI, mobile banking, and AI-driven services to improve efficiency and customer experience.

  • PSU Bank Consolidation Benefits – Merged with Andhra Bank and Corporation Bank, leading to stronger financials and cost synergies.

  • Rising CASA Ratio – Increasing low-cost deposits for better interest income margins.


Future Risks & Challenges

  • NPA (Non-Performing Asset) Concerns – Though improving, legacy bad loans still pose a risk.

  • Competition from Private Banks – PSU banks must compete with HDFC, ICICI, and Kotak for market share.

  • Interest Rate Cycles – A high interest rate environment could slow down credit demand.

  • Government Policies – PSU banks are subject to regulatory policies that impact profitability.


Short-Term Prediction (Next 6-12 Months)

Big Funds & Banks' Short-Term Views

  • Morgan Stanley has maintained an ‘Overweight’ rating, expecting further upside.

  • Jefferies India has set a target price of ₹175, citing strong earnings and credit demand.

Market Sentiment & Investor Outlook

  • Bullish investors believe the government’s support and digital push will drive growth.

  • Bearish investors are cautious about PSU banks due to historical NPA issues.

Short-Term Target Price (Bullish & Bearish)

Scenario

Target Price (Next 6-12 months)

Bullish Case

₹170 - ₹180

Bearish Case

₹130 - ₹140


Long-Term Prediction (2025-2030)

Big Funds & Banks' Views

  • Motilal Oswal projects Union Bank’s net profit to grow at a CAGR of 18%, boosting stock value.

  • CLSA has indicated a long-term target of ₹300+ if NPA reduction continues.

Market Sentiment & Investor Outlook

  • Long-term investors are optimistic due to strong PSU banking reforms.

  • The bank’s lower valuation makes it attractive compared to private sector peers.

Long-Term Prediction (Bullish & Bearish)

Scenario

Target Price (2025-2030)

Bullish Case

₹350 - ₹400

Bearish Case

₹200 - ₹250

Financial Growth Analysis

Metric

Last FY (%)

Expected Growth (%)

Revenue Growth

17.5%

12-15%

Net Profit Growth

20.3%

15-18%

NPA Reduction

-21.5%

-15% (Expected)

Data sourced from Union Bank’s latest quarterly results.

Union Bank has shown consistent profit growth while reducing bad loans, making it a strong PSU bank for long-term investors.


Conclusion: Should You Invest?

Union Bank of India is growing fast with strong government backing, digital innovation, and NPA reduction. At a low P/E of 7.5, it offers value investing potential. However, PSU banks come with risks, and investors should watch NPA trends before making long-term commitments.


Disclaimer

This analysis is for educational purposes only and not financial advice. Always conduct your own research and consult a financial advisor before investing. Stock markets are subject to risks.


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