New Delhi: Union Bank of India has reported a strong financial performance for the third quarter of FY26, with its net profit rising to ₹5,017 crore. The Board of Directors of the public sector lender approved the unaudited financial results for the quarter ended December 31, 2025, reflecting steady business growth, improved asset quality and robust capital adequacy.
Strong Financial Performance in Q3FY26
During Q3FY26, the Bank posted a net profit of ₹5,017 crore, underlining sustained profitability. The interest income for the quarter stood at ₹26,443 crore, supported by growth in advances and stable lending operations.
The performance reflects the Bank’s continued focus on credit expansion, balance sheet strengthening and prudent risk management.
Business Growth Driven by Advances
Union Bank of India’s total business grew by 5.04% year-on-year (YoY) during the quarter. Within this, gross advances registered a strong growth of 7.13% YoY, indicating healthy credit demand across key segments.
As of December 31, 2025, the Bank’s total business stood at ₹22,39,740 crore, reinforcing its position as one of India’s leading public sector banks.
Deposit Base Expands Steadily
The Bank’s total deposits increased by 3.36% YoY, reflecting stable customer confidence. Global deposits stood at ₹12,22,856 crore as on December 31, 2025.
Despite a competitive deposit environment, Union Bank maintained consistent growth while balancing cost of funds and liquidity requirements.
Strong Growth in Retail, Agri and MSME Segments
The Retail, Agriculture and MSME (RAM) portfolio continued to be a key growth driver. The Bank’s RAM advances grew by 11.50% YoY, significantly outpacing overall credit growth.
Within the RAM segment –
- Retail advances grew by 21.67% YoY
- MSME advances rose by 19.75% YoY
RAM advances accounted for 58.84% of domestic advances, highlighting the Bank’s strategic emphasis on granular, diversified lending.
Asset Quality Improves Further
Union Bank of India reported a marked improvement in asset quality during the quarter –
- Gross NPA ratio declined by 79 basis points YoY to 3.06%
- Net NPA ratio reduced by 31 basis points YoY to 0.51%
The reduction in stressed assets reflects effective recovery mechanisms, improved credit underwriting and focused resolution efforts.
Capital Position Remains Strong
The Bank’s capital adequacy remained comfortable –
- Capital to Risk-Weighted Assets Ratio (CRAR) stood at 16.49% as on December 31, 2025
- CET-1 ratio improved from 13.59% in December 2024 to 13.94% in December 2025
The strong capital buffers provide adequate headroom to support future growth and absorb potential risks.
Healthy Returns for Shareholders
Union Bank delivered solid returns during the quarter –
- Return on Assets (RoA): 1.35%
- Return on Equity (RoE): 17.09%
The healthy return ratios indicate improved operational efficiency and sustained profitability.
Outlook
With consistent growth in advances, improving asset quality, strong capital ratios and a robust focus on retail and MSME lending, Union Bank of India remains well-positioned for steady performance in the coming quarters.
About Union Bank of India
Union Bank of India, one of the country’s leading public sector banks, offers a comprehensive range of financial products and services, including retail banking, corporate banking, and digital banking solutions. With a strong national presence and a customer-centric approach, the bank continues to strengthen its reach while promoting inclusive growth and financial empowerment across India.
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