Union Bank of India
NII growth declines as NIM moderates: Interest income declined 5% to Rs 26439.01 crore, while interest expenses fell 6% to Rs 17033.03 crore in Q4FY2026. NII eased 1% to Rs 9405.98 crore in Q4FY2026.
Margins eases: The bank has shown 38 bps YoY decline in cost of deposits to 5.23%, while yield on advances declined 74 bps YoY to 7.98% in Q4FY2026. Thus, the NIM has eased 23 bps YoY to 2.64%, while fell 12 bps qoq to 2.64% in Q4FY2026.
Healthy growth in the core fee income: Bank has posted 6% growth in core fee income to Rs 2631 crore, while the recoveries income improved 71% to Rs 1567 crore and other income moved up 8% to Rs 562 crore. However, the treasury income dipped 71% to Rs 385 crore and forex income fell 16% to Rs 252 crore, leading to 3% decline in the overall non-interest income to Rs 5412.14 crore in Q4FY2026.
Expense ratio improves: The operating expenses of the bank declined 7% to Rs 6862.83 crore, as employee expenses fell 16% to Rs 3424.77 crore in Q4FY2026. Other expenses moved up 4% to Rs 3438.06 crore. Cost to income ratio improved to 46.3% in Q4FY2026 compared with 48.9% in Q4FY2025. Operating Profit moved up 3% to Rs 7955.29 crore.
Provisions and contingencies dip: The bank has shown 32% decline in provisions to Rs 1055 crore. The loan loss provisions fell 75% to Rs 423 crore, while other provisions fell 74% to Rs 18 crore in Q4FY2026. However, the investment provisions rebounded to Rs 166 crore and standard asset provisions bounced back to Rs 448 crore in Q4FY2026.
PBT increased 12% to Rs 6900.31 crore in Q4FY2026. Effective tax rate increased to 23.0% in Q4FY2026 from 19.0% in Q4FY2025. Net Profit increased 7% YoY to Rs 5315.76 crore in Q4FY2026.
Asset quality improves: The bank has improved asset quality in Q4FY2026.
The fresh slippages of loans stood at Rs 2102 crore in Q4FY2026 compared with Rs 1853 crore in previous quarter and Rs 2567 crore in the corresponding quarter last year. Segment wise, retail segment contributed fresh slippages of Rs 370 crore, agriculture Rs 742 crore, MSME Rs 895 crore and coporate Rs 94 crore in Q4FY2026. The recoveries of NPAs stood at Rs 1290 crore and upgrades were at Rs 365 crore, while the write-off of bad loans was at Rs 1167 crore in Q4FY2026. The standard restructured loan book of the bank declined to Rs 7469 crore end March 2026 compared to Rs 7840 crore a quarter ago. Provision coverage ratio was steady at 95.03% at end March 2026 compared to 95.13% a quarter ago and 94.61% a year ago. The capital adequacy ratio of the bank stood at 18.1% with Tier I ratio at 16.6% at end March 2026. The risk weighted assets of the bank has increased 8% YoY to Rs 761160 crore end March 2026.| Asset Quality Indicators: Union Bank of India | |||||||
| ? | Mar-26 | Dec-25 | Sep-25 | Jun-25 | Mar-25 | Variation | |
| QoQ | YoY | ||||||
| Gross NPA (Rs Crore) | 30400.77 | 31120.88 | 32085.13 | 34311.31 | 35350.38 | -2 | -14 |
| Net NPA (Rs Crore) | 5067.28 | 5102.15 | 5209.42 | 5873.90 | 5969.29 | -1 | -15 |
| % Gross NPA | 2.82 | 3.06 | 3.29 | 3.52 | 3.60 | -24 | -78 |
| % Net NPA | 0.48 | 0.51 | 0.55 | 0.62 | 0.63 | -3 | -15 |
| % PCR | 95.03 | 95.13 | 95.13 | 94.65 | 94.61 | -10 | 42 |
| % CRAR - Basel III | 18.10 | 16.49 | 17.07 | 18.03 | 18.02 | 161 | 8 |
| % CRAR - Tier I - Basel III | 16.63 | 15.06 | 15.58 | 16.58 | 16.24 | 157 | 39 |
| 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 6% YoY to Rs 2385502 crore end March 2026, as advances growth improved to 10% to Rs 1078611 crore. Deposits growth moderated to 3% to Rs 1306891 crore at end March 2026. With the faster growth in advances, the credit to deposit ratio increased to 82.5% at end March 2026 from 77.3% at end March 2025.
CASA deposits ratio improves: The CASA deposits of the bank increased 8% YoY to Rs 460077 crore at end March 2026. The current account deposits slipped 3% to Rs 84087 crore, while saving account deposits galloped 11% to Rs 375990 crore end March 2026. The CASA ratio improved to 35.2% at end March 2026 compared to 33.5% at end March 2025, while increased from 33.9% at end December 2025. The term deposits were flat yoy at Rs 846814 crore end March 2026.
Strong retail loan growth: Within the loan book, the retail loans increased 17% YoY to Rs 253083 crore at end March 2026, while credit to agriculture increased 3% to Rs 183394 crore and MSME credit increased 19% to Rs 162007 crore. The corporate credit has also moved up 6% to Rs 480127 crore end March 2026. The overseas credit has increased 2% to Rs 37657 crore end March 2026. The share of retail, agriculture and MSME (RAM) improved to 55.5% at end March 2026 compared to 54.1% at end March 2025.
Investment book of the bank declined 7% YoY to Rs 331682 crore at end March 2026. The SLR book slipped 8% to Rs 261387 crore, while non SLR book declined 5% to Rs 70295 crore at end March 2026. The AFS book galloped 108% to Rs 52961 crore, while HTM book rose declined 15% to Rs 260981 crore at end March 2026. The duration of the AFS investment portfolio stood at 4.06 years end March 2026 compared with 5.17 years at end March 2025.
Branch expansion: The bank has added 26 branches and added 356 ATMs in Q4FY2026, taking overall tally to 8697 branches and 8656 ATM`s end March 2026.
Book value of the bank stood at Rs 161.3 per share at end March 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 152.2 per share at end March 2026.
Financial Performance FY2026:
Bank has posted 4% increase in net profit to Rs 18697.14 crore in the year ended March 2026 (FY2026). The net interest income declined 1% to Rs 36658.83 crore, while non-interest income fell 2% to Rs 19434.79 crore, leading net total income to fall 2% to Rs 56093.62 crore in FY2026. The operating expenses increased 6% to Rs 27474.12 crore, while provision and contingencies dipped 42% to Rs 4438.45 crore. PBT increased 3% to Rs 24181.05 crore in FY2026. The cost-to-income ratio rose to 49.0% in FY2026 compared to 45.5% in FY2025. An effective tax rate eased to 22.7% in FY2026 compared to 23.4% in FY2025. The net profit has increased 4% to Rs 18697.14 crore in FY2026.?
| Union Bank of India: Results | ||||||
| Particulars | 2603 (3) | 2503 (3) | Var % | 2603 (12) | 2503 (12) | Var % |
| Interest Earned | 26439.01 | 27695.22 | -5 | 105992.23 | 105908.94 | 0 |
| Interest Expended | 17033.03 | 18181.17 | -6 | 69333.40 | 68695.26 | 1 |
| Net Interest Income | 9405.98 | 9514.05 | -1 | 36658.83 | 37213.68 | -1 |
| Other Income | 5412.14 | 5559.09 | -3 | 19434.79 | 19812.92 | -2 |
| Net Total Income | 14818.12 | 15073.14 | -2 | 56093.62 | 57026.60 | -2 |
| Operating Expenses | 6862.83 | 7372.99 | -7 | 27474.12 | 25936.56 | 6 |
| Operating Profits | 7955.29 | 7700.15 | 3 | 28619.50 | 31090.04 | -8 |
| Provisions & Contingencies | 1054.98 | 1543.92 | -32 | 4438.45 | 7610.98 | -42 |
| Profit Before Tax | 6900.31 | 6156.23 | 12 | 24181.05 | 23479.06 | 3 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 6900.31 | 6156.23 | 12 | 24181.05 | 23479.06 | 3 |
| Provision for tax | 1584.55 | 1171.31 | 35 | 5483.91 | 5491.92 | 0 |
| PAT | 5315.76 | 4984.92 | 7 | 18697.14 | 17987.14 | 4 |
| EPS*(Rs) | 27.85 | 26.12 | ? | 24.49 | 23.56 | ? |
| Equity | 7633.6 | 7633.6 | ? | 7633.6 | 7633.6 | ? |
| Adj BV (Rs) | 152.19 | 130.09 | ? | 152.19 | 130.09 | ? |
| * 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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