Union Bank of India Declares ₹4.75 Dividend for FY25 | Ex-Date: 25 July 2025

A Rewarding Move for Shareholders: ₹4.75 Final Dividend Announced

Union Bank of India, one of India’s leading public sector banks, has declared a final dividend of ₹4.75 per equity share for the financial year 2024–25. This announcement not only reflects the bank’s solid financial performance but also reaffirms its growing commitment to rewarding investors.

The dividend was approved during the board meeting held in May 2025, and investors can now look forward to a timely credit by August end.

🗓️ Important Dates to Remember

✅ Ex-Date (25 July 2025): You must own the stock before this date to be eligible for the ₹4.75 dividend.

✅ Record Date (25 July 2025): Shareholders recorded on this day will receive the dividend.

✅ Payment Date (by 31 August 2025): The dividend will be credited directly to bank accounts linked with your Demat holdings.

📊 Dividend Yield & Financial Snapshot

• Dividend Declared: ₹4.75 per share

• Current Market Price (22 July 2025): ₹142.85

• Dividend Yield: Approx. 3.3%

• Earnings Per Share (EPS) FY25: ₹23.62

• Dividend Payout Ratio: ~20.1%

• Market Capitalisation: ₹1.05 lakh crore+

🔍 A yield of 3.3% is highly competitive among PSU banks, positioning Union Bank as a solid dividend-paying stock in the Indian financial sector.

💹 Union Bank Dividend History – Steady & Growing

Union Bank of India has been consistent in its dividend payouts, and the latest ₹4.75 dividend marks a 32% increase over last year’s ₹3.60 payout. Here’s a quick view of its dividend progression:

📈 This shows a three-year dividend CAGR of nearly 37%, making it an attractive choice for long-term income investors.

🧾 Why the ₹4.75 Dividend? Understanding the Rationale

Union Bank’s dividend decision is backed by its strong earnings performance and robust asset quality improvements:

✔️ Net Profit Growth: Union Bank posted a 22% YoY increase in net profit for FY25, driven by higher interest income and better cost management.

✔️ Healthy Capital Adequacy: The bank’s capital adequacy ratio (CAR) stands above 14%, ensuring it meets regulatory requirements even after distributing dividends.

✔️ Improved Asset Quality: GNPA and NNPA levels have come down significantly, indicating lower credit risk and more reliable future cash flows.

✔️ Earnings Coverage: With an EPS of ₹23.62, the payout ratio of ~20% is well within sustainable limits, leaving ample room for reinvestment and future growth.

📉 Expected Market Reaction – What Should Investors Expect?

As per standard market practice, stock prices usually adjust downward by the dividend amount on the ex-date. So, a ~₹4.75 drop may be seen in Union Bank’s share price on 25 July.

However, due to positive sentiment from the dividend news and strong fundamentals, the downside may be limited or short-lived.

📌 Note: If the stock rises due to broader market movement or buying pressure, the drop might be neutralized.

👤 Retail Investor Takeaway – Should You Hold or Buy?

This dividend presents a lucrative opportunity for existing investors, and the rising payout trend makes a compelling case for inclusion in long-term portfolios.

🔹 Benefits:

• Steady income stream with above-average PSU yield

• Consistent payout history with growth

• Financially sound fundamentals

• Favorable macro tailwinds for public banks

🔻 Risks to Watch:

• Dividend income is taxable, and TDS applies if total payouts exceed ₹5,000/year

• Ex-date volatility may temporarily reduce value

• Macroeconomic shocks or rising NPAs can affect future payouts

🏦 About Union Bank of India – A Quick Overview

• Founded: 1919

• Headquarters: Mumbai, India

• Ownership: Majority-owned by Government of India

• Network: Over 8,700 branches and 11,000+ ATMs across India

• Business Focus: Corporate banking, retail loans, MSME lending, and treasury

🔎 Union Bank has transformed itself into a technology-driven PSU lender and is gaining traction among mid-tier retail and institutional investors.

🧮 Final Checklist for Dividend Investors

✅ Do you hold shares as of 24 July 2025 (before ex-date)?
✅ Is your Demat account linked to a valid bank account?
✅ Have you checked your TDS status for dividends?
✅ Are you holding Union Bank for long-term yield growth?

📌 Conclusion

Union Bank of India’s ₹4.75 dividend for FY25 is a strong indication of its financial health and investor-focused strategy. With a stable earnings base, growing dividend trend, and a competitive yield, the stock emerges as a sound pick for both income-focused and value-oriented investors.

Keep an eye on 25 July 2025 – and make sure you’re eligible to receive this well-earned payout!

📉 Stock Market Disclaimer

Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.