Union Bank of India
NII growth improves as NIM rises sequentially: Interest income was flat at Rs 26443.41 crore, while interest expenses fell 1% to Rs 17115.48 crore in Q3FY2026. NII improved 1% to Rs 9327.93 crore in Q3FY2026.
Margins improve qoq: The bank has shown 25 bps YoY decline in cost of deposits to 5.31%, while yield on advances declined 51 bps YoY to 8.27% in Q3FY2026. Thus, the NIM has eased 15 bps YoY to 2.76%, while rose 9 bps qoq to 2.76% in Q3FY2026.
Core fee income rises: The non-interest income of the bank increased 3% to Rs 4541.05 crore in Q3FY2026. Bank has posted 4% growth in core fee income to Rs 2450 crore, while the forex income moved up 53% to Rs 320 crore. However, the recoveries income dipped 35% to Rs 667 crore and treasury income eased 4% to Rs 581 crore. The other income galloped 100% to Rs 514 crore in Q3FY2026.
Expense ratio rises: The operating expenses of the bank increased 12% to Rs 6927.38 crore, as other expenses moved up 8% to Rs 2916.28 crore, while employee expenses jumped 16% to Rs 4011.1 crore in Q3FY2026. Cost to income ratio deteriorated to 49.9% in Q3FY2026 compared with 45.1% in Q3FY2025. Operating Profit fell 7% to Rs 6941.60 crore in Q2FY2026.
Provisions and contingencies decline: The bank has shown 80% decline in provisions to Rs 322 crore. The loan loss provisions fell 84% to Rs 235 crore. However, the investment provisions rebounded to Rs 26 crore and standard asset provisions surged to Rs 176 crore. The bank has reversed provisions of Rs 115 crore in Q3FY2026.
PBT increased 12% to Rs 6619.37 crore in Q3FY2026. Effective tax rate rose to 24.2% in Q3FY2026 from 21.9% in Q3FY2025. Net Profit increased 9% YoY to Rs 5016.77 crore in Q3FY2026.
Asset quality improves: The bank has improved asset quality in Q3FY2026.
The fresh slippages of loans declined to Rs 1853 crore in Q3FY2026 compared with Rs 2151 crore in previous quarter and Rs 1969 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs stood at Rs 482 crore, while the write-off of loans was at Rs 1124 crore in Q3FY2026. The standard restructured loan book of the bank declined to Rs 7840 crore end December 2025 compared to Rs 8048 crore a quarter ago. Provision coverage ratio was steady at 95.13% at end December 2025 compared to 95.13% a quarter ago and 93.42% a year ago. The capital adequacy ratio of the bank stood at 16.5% with Tier I ratio at 15.1% at end December 2025. The risk weighted assets of the bank has increased 10% YoY to Rs 724948 crore end December 2025,| Asset Quality Indicators: Union Bank of India | ||||||||
| ? | Dec-25 | Sep-25 | Jun-25 | Mar-25 | Dec-24 | Variation | ||
| QoQ | YTD | YoY | ||||||
| Gross NPA (Rs Crore) | 31120.88 | 32085.13 | 34311.31 | 35350.38 | 36554.25 | -3 | -12 | -15 |
| Net NPA (Rs Crore) | 5102.15 | 5209.42 | 5873.90 | 5969.29 | 7568.36 | -2 | -15 | -33 |
| % Gross NPA | 3.06 | 3.29 | 3.52 | 3.60 | 3.85 | -23 | -54 | -79 |
| % Net NPA | 0.51 | 0.55 | 0.62 | 0.63 | 0.82 | -4 | -12 | -31 |
| % PCR | 95.13 | 95.13 | 94.65 | 94.61 | 93.42 | 0 | 52 | 171 |
| % CRAR - Basel III | 16.49 | 17.07 | 18.03 | 18.02 | 16.72 | -58 | -153 | -23 |
| % CRAR - Tier I - Basel III | 15.06 | 15.58 | 16.58 | 16.24 | 14.89 | -52 | -118 | 17 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
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Business Highlights:
Business growth improves: The business of the bank has increased at an accelerated pace of 5% YoY to Rs 2239740 crore end December 2025, as advances growth improved to 7% to Rs 1016884 crore and deposits growth improved to 3% to Rs 1222856 crore at end December 2025. With the faster growth in advances, the credit to deposit ratio rose to 83.2% at end December 2025 from 80.2% at end December 2024.
CASA deposits ratio improves: The CASA deposits of the bank increased 5% YoY to Rs 415094 crore at end December 2025. The current account deposits moved up 1% to Rs 63010 crore, while saving account deposits increased 6% to Rs 338844 crore end December 2025. The CASA ratio improved to 33.9% at end December 2025 compared to 33.4% at end December 2024, while increased from 32.5% at end September 2025. The term deposits have increased 3% to Rs 807762 crore end December 2025.
Loan growth improves: Within the loan book, the retail loans increased 22% YoY to Rs 245541 crore at end December 2025, while MSME credit increased 20% to Rs 156203 crore. The corporate credit has also increased 2% to Rs 439846 crore end December 2025. The overseas credit was flat at Rs 36165 crore end December 2025. However, the credit to agriculture declined 5% to Rs 175294 crore.
The share of retail, agriculture and MSME (RAM) improved to 56.7% at end December 2025 compared to 54.5% at end December 2024, while that of corporate loans eased to 43.3% at end December 2025 compared to 45.5% at end December 2024.Investment book of the bank declined 3% YoY to Rs 333067 crore at end December 2025. The SLR book slipped 5% to Rs 256709 crore, while non SLR book moved up 5% to Rs 76358 crore at end December 2025. The AFS book galloped 95% to Rs 46845 crore, while HTM book rose declined 11% to Rs 264628 crore at end December 2025. The duration of the AFS investment portfolio stood at 5.25 years end December 2025 compared with 5.19 years at end December 2024.
Branch expansion: The bank has added 16 branches and reduced 764 ATMs in Q3FY2026, taking overall tally to 8671 branches and 8300 ATM`s end December 2025.
Book value of the bank stood at Rs 158.0 per share at end December 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 148.7 per share at end December 2025.
Financial Performance 9MFY2026:
Bank has posted 3% increase in net profit to Rs 13381.38 crore in the nine months ended December 2025 (9MFY2026). The net interest income declined 2% to Rs 27252.85 crore, while non-interest income fell 2% to Rs 14022.65 crore, leading net total income to fall 2% to Rs 41275.50 crore in 9MFY2026. The operating expenses increased 11% to Rs 20611.29 crore, while provision and contingencies dipped 44% to Rs 3383.47 crore. The cost-to-income ratio rose to 49.9% in 9MFY2026 compared to 44.2% in 9MFY2025. PBT was flat at Rs 17280.74 crore in 9MFY2026. An effective tax rate eased to 22.6% in 9MFY2026 compared to 24.9% in 9MFY2025. The net profit has increased 3% to Rs 13381.38 crore in 9MFY2026. ?| Union Bank of India: Results | |||||||||
| Particulars | 2512 (3) | 2412 (3) | Var % | 2512 (9) | 2412 (9) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 26443.41 | 26543.56 | 0 | 79553.22 | 78715.36 | 1 | 107725.97 | 99777.96 | 8 |
| Interest Expended | 17115.48 | 17303.29 | -1 | 52300.37 | 51015.74 | 3 | 70512.30 | 63207.56 | 12 |
| Net Interest Income | 9327.93 | 9240.27 | 1 | 27252.85 | 27699.62 | -2 | 37213.67 | 36570.40 | 2 |
| Other Income | 4541.05 | 4416.57 | 3 | 14022.65 | 14253.83 | -2 | 19812.92 | 16080.19 | 23 |
| Net Total Income | 13868.98 | 13656.84 | 2 | 41275.50 | 41953.45 | -2 | 57026.59 | 52650.59 | 8 |
| Operating Expenses | 6927.38 | 6165.02 | 12 | 20611.29 | 18563.56 | 11 | 25936.55 | 24439.96 | 6 |
| Operating Profits | 6941.60 | 7491.82 | -7 | 20664.21 | 23389.89 | -12 | 31090.04 | 28210.63 | 10 |
| Provisions & Contingencies | 322.23 | 1599.05 | -80 | 3383.47 | 6067.06 | -44 | 7610.98 | 6780.24 | 12 |
| Profit Before Tax | 6619.37 | 5892.77 | 12 | 17280.74 | 17322.83 | 0 | 23479.06 | 21430.39 | 10 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 6619.37 | 5892.77 | 12 | 17280.74 | 17322.83 | 0 | 23479.06 | 21430.39 | 10 |
| Provision for tax | 1602.60 | 1289.14 | 24 | 3899.36 | 4320.61 | -10 | 5491.92 | 7782.08 | -29 |
| PAT | 5016.77 | 4603.63 | 9 | 13381.38 | 13002.22 | 3 | 17987.14 | 13648.31 | 32 |
| EPS*(Rs) | 26.3 | 24.1 | ? | 23.4 | 22.7 | ? | 23.6 | 17.9 | ? |
| Equity | 7633.6 | 7633.6 | ? | 7633.6 | 7633.6 | ? | 7633.6 | 7633.6 | ? |
| Adj BV (Rs) | 148.7 | 125.5 | ? | 148.7 | 125.5 | ? | 130.1 | 103.5 | ? |
| * 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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