Mumbai: Union Bank of India has announced a consolidated net profit of Rs 5,316 crore for the quarter ending March 31, representing a 6.6% increase compared to Rs 4,985 crore in the same period last year. The growth was primarily driven by a reduction in operating expenses and an improvement in asset quality.
Quarterly Performance Highlights
The bank's net interest income (NII) for the fourth quarter stood at Rs 10,845 crore, up from Rs 10,258 crore in the corresponding quarter of the previous fiscal. The net interest margin (NIM) improved to 3.12% from 3.05% year-on-year. Operating expenses declined by 8% to Rs 5,210 crore, aided by lower employee costs and other overheads.
Asset quality metrics showed notable improvement, with gross non-performing assets (GNPA) ratio falling to 4.54% from 5.24% a year ago. Net NPAs also declined to 1.12% from 1.43% in the same period. Provision coverage ratio strengthened to 88.5% from 86.2%.
Full Year Performance FY26
For the full fiscal year 2025-26, Union Bank reported a net profit of Rs 18,697 crore, approximately 4% higher than Rs 17,987 crore in the previous year. The bank's total income for FY26 increased to Rs 1,15,432 crore from Rs 1,08,765 crore in FY25.
Other key financial metrics for the year include:
- Return on Assets (ROA): 1.02% compared to 0.98% in FY25
- Return on Equity (ROE): 14.5% versus 13.8%
- Capital Adequacy Ratio (CRAR): 16.2% as against 15.8%
The bank's board has recommended a dividend of Rs 5.50 per equity share for the financial year 2025-26, subject to shareholder approval. The bank's total business grew by 12% year-on-year, with deposits increasing by 10% and advances by 14%.
Union Bank's management attributed the strong performance to sustained focus on retail and MSME lending, digital initiatives, and disciplined cost management. The bank aims to further enhance its profitability through technology adoption and improved operational efficiency in the coming quarters.
