Union Bank of India
Asset quality improves: The bank has improved asset quality in Q1FY2026.
The fresh slippages of loans stood at Rs 2345 crore in Q1FY2026 compared with 2567 crore in previous quarter and Rs 2318 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 790 crore, upgradations at Rs 519 crore and the write-off of loans was at Rs 2076 crore in Q1FY2026. The standard restructured loan book of the bank stood at Rs 8608 crore end June 2025. Provision coverage ratio was steady at 94.65% at end June 2025 compared to 94.61% a quarter ago and 93.49% a year ago. The capital adequacy ratio of the bank stood at 18.0% with Tier I ratio at 16.6% at end June 2025. The risk weighted assets of the bank has increased 2% YoY to Rs 688696 crore end June 2025,| Asset Quality Indicators: Union Bank of India | |||||||
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| Jun-25 | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Variation | |
| QoQ | YoY | ||||||
| Gross NPA (Rs Crore) | 34311.31 | 35350.38 | 36554.25 | 40498.86 | 41422.94 | -3 | -17 |
| Net NPA (Rs Crore) | 5873.90 | 5969.29 | 7568.36 | 8758.59 | 7902.04 | -2 | -26 |
| % Gross NPA | 3.52 | 3.60 | 3.85 | 4.36 | 4.54 | -8 | -102 |
| % Net NPA | 0.62 | 0.63 | 0.82 | 0.98 | 0.90 | -1 | -28 |
| % PCR | 94.65 | 94.61 | 93.42 | 92.79 | 93.49 | 4 | 116 |
| % CRAR - Basel III | 18.03 | 18.02 | 16.72 | 17.13 | 17.02 | 1 | 101 |
| % CRAR - Tier I - Basel III | 16.58 | 16.24 | 14.89 | 15.22 | 15.14 | 34 | 144 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||
Business Highlights:
Business growth moderates: The business of the bank has increased 4% YoY to Rs 2214422 crore end June 2025, driven by 7% rise in advances to Rs 974489 crore. Deposits rose 1% to Rs 1239933 crore at end June 2025.
CASA deposits ratio stable: The CASA deposits of the bank increased 1% YoY to Rs 403045 crore at end June 2025. The current account deposits increased 2% to Rs 68570 crore, while saving account deposits rose 1% to Rs 334475 crore end June 2025. The CASA ratio was steady at 32.5% at end June 2025 compared to 32.6% at end June 2024 and 32.6% a quarter ago. The term deposits have increased 1% to Rs 836888 crore end June 2025.
Strong retail loan growth: Advances growth was driven by retail loans rising 26% YoY to Rs 229040 crore at end June 2025, while credit to MSME declined 5% to Rs 144441 crore at end June 2025. The corporate credit has moved up 6% to Rs 429402 crore end June 2025. However, the credit to agriculture declined 9% to Rs 171606 crore. The overseas credit has moved up 9% to Rs 36391 crore end June 2025.
Investment book of the bank declined 1% YoY to Rs 342574 crore at end June 2025. The SLR book fell 6% to Rs 256784 crore, while non SLR book jumped 19% to Rs 85789 crore at end June 2025. The AFS book increased 9% to Rs 26475 crore, while HTM book declined 13% to Rs 278752 crore at end June 2025. The duration of the overall investment portfolio stood at 3.88 years end June 2025 compared with 2.41 years at end June 2024.
Margins improve: The bank has shown 16 bps YoY jump in cost of deposits to 5.53%, while yield on advances declined 22 bps YoY to 8.50% in Q1FY2026. Thus, the NIM has dipped 29 bps YoY to 2.76% and 11 bps qoq to 2.76% in Q1FY2026.
Branch expansion: The bank has added 28 branches and 66 ATMs in Q1FY2026, taking overall tally to 8649 branches and 8976 ATM`s end June 2025.
Book value of the bank stood at Rs 146.2 per share at end June 2025, while the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 135.7 per share at end June 2025.
Quarterly Performance
NII decline as NIM dip: Bank has recorded 4% increase in the interest earned at Rs 27295.56 crore, while interest expenses increased 7% to Rs 18183.01 crore in Q1FY2026. NII declined 3% to Rs 9112.55 crore in the quarter ended June 2025.
Core fee income dips: Bank has posted 23% decline in core fee income to Rs 2219 crore, while the recoveries dipped 11% to Rs 850 crore. However, the forex income improved 35% to Rs 265 crore and treasury income surged 129% to Rs 1153 crore. The overall non-interest income fell 1% to Rs 4485.78 crore in the quarter ended June 2025.
Expenses ratio jump: The operating expenses of the bank increased 9% to Rs 6689.67 crore, as other expenses moved up 7% to Rs 2743.77 crore, while employee expenses increased 11% to Rs 3945.9 crore in Q1FY2026. Cost to income ratio jumped to 49.2% in Q1FY2026 compared with 44.1% in Q1FY2025, causing the Operating Profit to declined 11% to Rs 6908.66 crore.
Provisions and contingencies decline: The bank has shown 40% decline in provisions to Rs 1664.51 crore. The loan loss provisions declined 30% to Rs 1153 crore, while standard asset provisions fell 66% to Rs 446 crore. On the other hand, the investment provisions rebounded to Rs 101 crore and other provisions surged 54% to Rs 166 crore.
Effective tax rate declined to 21.5% in Q1FY2026 from 26.9% in Q1FY2025. Net Profit rose by 12% YoY to Rs 4115.53 crore during quarter ended June 2025.
Financial Performance FY2025:
Bank has posted 32% increase in net profit to Rs 17987.14 crore in the year ended March 2025 (FY2025). The net interest income increased 2% to Rs 37213.67 crore, while non-interest income moved up 23% to Rs 19812.92 crore, pushing up net total income by 8% to Rs 57026.59 crore in FY2025. The operating expenses increased 6% to Rs 25936.55 crore, while provision and contingencies galloped 12% to Rs 7610.98 crore, allowing profit before tax to increase 10% to Rs 23479.06 crore in FY2025. The cost-to-income ratio improved to 45.5% in FY2025 compared to 46.4% in FY2024. An effective tax rate declined to 23.4% in FY2025 compared to 36.3% in FY2024. The net profit has increased 32% to Rs 17987.14 crore in FY2025.| Union Bank of India: Results | ||||||
| Particulars | 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 27295.56 | 26364.39 | 4 | 107725.97 | 99777.96 | 8 |
| Interest Expended | 18183.01 | 16952.30 | 7 | 70512.30 | 63207.56 | 12 |
| Net Interest Income | 9112.55 | 9412.09 | -3 | 37213.67 | 36570.40 | 2 |
| Other Income | 4485.78 | 4509.23 | -1 | 19812.92 | 16080.19 | 23 |
| Net Total Income | 13598.33 | 13921.32 | -2 | 57026.59 | 52650.59 | 8 |
| Operating Expenses | 6689.67 | 6136.01 | 9 | 25936.55 | 24439.96 | 6 |
| Operating Profits | 6908.66 | 7785.31 | -11 | 31090.04 | 28210.63 | 10 |
| Provisions & Contingencies | 1664.51 | 2755.81 | -40 | 7610.98 | 6780.24 | 12 |
| Profit Before Tax | 5244.15 | 5029.50 | 4 | 23479.06 | 21430.39 | 10 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 5244.15 | 5029.50 | 4 | 23479.06 | 21430.39 | 10 |
| Provision for tax | 1128.62 | 1350.65 | -16 | 5491.92 | 7782.08 | -29 |
| PAT | 4115.53 | 3678.85 | 12 | 17987.14 | 13648.31 | 32 |
| EPS*(Rs) | 21.57 | 19.28 | 23.56 | 17.88 | ||
| Equity | 7633.6 | 7633.6 | 7633.6 | 7633.6 | ||
| Adj BV (Rs) | 135.72 | 112.47 | 130.09 | 103.48 | ||
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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