Union Bank slides as core income slips despite Q4 PAT rising 7% to Rs 5,316 cr

Net interest income (NII) slipped 1.1% to Rs 9,406 crore in the March 2026 quarter, compared to Rs 9,514 crore in the March 2025 quarter. For Q4 FY26, the net interest margin (NIM) was 2.64%, down from 2.87% in the corresponding period last year.

The bank reported a 6.6% rise in net profit to Rs 5,315.76 crore despite a 2.75% decline in total income to Rs 31,851.15 crore in Q4 FY26 over Q4 FY25.

Provisions and contingencies dropped by 31.67% to Rs 1,054.98 crore in Q4 FY26 from Rs 1,543.92 crore in Q4 FY25.

On the asset quality front, the gross NPA ratio declined to 2.82% as of 31 March 2026 from 3.60% a year ago. The net NPA ratio fell 15 basis points to 0.48% from 0.63% over the same period.

Total business grew 5.78% YoY, with gross advances rising 9.74% and total deposits increasing 2.72%. The bank?s total business stood at Rs 23,85,502 crore as of 31 March 2026.

Global deposits rose 2.72% YoY. The bank now has a total deposit base of Rs 13,06,891 crore as of 31 March 2026. The RAM segment of the bank grew 12.56% YoY, with retail advances rising 16.75% and MSME advances increasing 18.75% YoY. RAM advances as a percentage of domestic advances stood at 57.49%.

The CRAR stood at 18.10% as of 31 March 2026, while the CET-1 ratio improved to 15.69% from 14.98% a year ago.

The bank?s return on assets (ROA) and return on equity (ROE) stood at 1.25% and 15.86%, respectively, during FY26.

Meanwhile, the board has recommended a dividend of Rs 5 per equity share (face value Rs 10) for FY26, subject to shareholder approval at the ensuing AGM. The record date and AGM details will be announced in due course.

Union Bank of India is one of the leading public sector banks in the country. The Government of India holds 74.76% of the bank's total paid-up capital.