New Delhi: State-owned Union Bank of India reported a 6.64% year-on-year rise in standalone net profit (PAT) at ₹5,316 crore for the quarter ended March 2026, compared with ₹4,985 crore in the same quarter last year.
The bank’s performance reflected stable profitability even as core income showed mild pressure.
Net Interest Income Declines Marginally
The bank’s Net Interest Income (NII) slipped 1.14% year-on-year to ₹9,406 crore during the March quarter.
Total income also declined to ₹31,851.15 crore, down from ₹32,752.67 crore in the corresponding quarter of the previous fiscal.
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Asset Quality Shows Clear Improvement
Union Bank reported continued improvement in asset quality:
- Gross NPA (GNPA): 2.82% (down from 3.6% YoY)
- Net NPA (NNPA): 0.48% (down from 0.63% YoY)
The improvement highlights better recovery trends and tighter credit monitoring.
Higher Provisions Amid Quarterly Volatility
The bank reported a sharp sequential rise in provisions:
- Provisions rose to ₹423 crore, up from ₹235 crore in the previous quarter
- Fresh slippages stood at ₹2,023 crore, lower year-on-year but higher sequentially
- Sequential increase in stress led to caution in investor sentiment
Dividend of ₹5 Per Share Announced
The board has recommended a dividend of ₹5 per equity share (face value ₹10) for FY2025–26, subject to shareholder approval.
Stock Reaction and Market Pressure
Despite improved profits, Union Bank shares fell 6.42% to ₹182.2 on the BSE.
Investor concerns were driven by:
- Rise in sequential slippages
- Higher provisions
- Broader PSU banking volatility in the market
Management Outlook on Growth
The bank signaled a stronger growth outlook, with expectations of:
- Loan growth of 13–14% in FY27
- Around 10% credit growth target for FY26
Management indicated confidence in rising credit demand and expansion in advances over the medium term.
About Union Bank of India
Union Bank of India is one of India’s leading public sector banks, offering a wide range of retail, corporate, and treasury banking services. Headquartered in Mumbai, the bank has a large nationwide network and plays a key role in credit delivery, financial inclusion, and supporting India’s economic growth.
