New Delhi: Union Bank of India, one of the leading public sector lenders, has announced its financial results for the first quarter of FY26, reporting a net profit growth of 11.87% year-on-year (YoY). The Bank posted improved earnings supported by higher interest income, robust credit growth, and continued improvement in asset quality.
Interest Income and Business Growth
The Bank’s interest income rose by 3.53% YoY in Q1 FY26, reflecting steady lending activity. The total business of the Bank stood at ₹22,14,422 crore as on June 30, 2025, marking a 5.01% YoY increase.
- Gross Advances grew by 6.83% YoY, signaling strong credit demand.
- Total Deposits rose by 3.63% YoY, reaching ₹12,39,933 crore globally.
Read Also: Vipan Singh Takes Charge as Head of Audit & Inspection at Union Bank of India
Strong Performance in RAM Segment
The Bank’s RAM (Retail, Agriculture, and MSME) segment witnessed 10.34% YoY growth, driven by:
- Retail loans growing at 25.63%
- MSME loans expanding by 17.65%
As a result, RAM advances now constitute 58.11% of Union Bank’s total domestic advances, highlighting the Bank’s focus on inclusive and broad-based lending.
Asset Quality Sees Major Improvement
The Bank recorded significant improvement in asset quality metrics:
- Gross Non-Performing Assets (NPA) declined by 102 basis points YoY to 3.52%
- Net NPA reduced by 28 basis points to 0.62%
These reductions indicate enhanced recovery efforts and prudent credit risk management.
Market Reaction
On the Bombay Stock Exchange (BSE), Union Bank shares closed at ₹146.50, showing a marginal uptick of 0.13%, following the Q1 results announcement.
Outlook
With consistent growth in core business segments and improving asset quality, Union Bank of India continues to strengthen its financial position heading into the rest of FY26. The focus on RAM lending and reduction in NPAs positions the bank well for sustainable profitability.
About Union Bank Of India
Union Bank of India is an Indian public sector bank headquartered in Mumbai. It has over 153 million customers and a total business of Rs 21,65,726 crores as of 31 December 2024. After merging with Corporation Bank and Andhra Bank, which came into effect on 1 April 2020, the merged entity became one of the largest public sector banks in terms of branch network with around 9,300 branches. Four of these are located overseas in Hong Kong, Dubai, Antwerp, and Sydney.
