Union Bank of India announced its financial results for the April–June quarter of the financial year 2025–26 (Q1 FY26). The bank reported a 12% increase in net profit, which rose to ₹4,116 crore, compared to ₹3,679 crore in the same quarter last year.
Key Highlights:
- Total income increased to ₹31,791 crore from ₹30,874 crore a year ago.
- Interest income rose to ₹27,296 crore, up from ₹26,364 crore last year.
- However, net interest income (NII) fell to ₹9,113 crore, down from ₹9,412 crore.
- Operating profit dropped by 11%, down to ₹6,909 crore from ₹7,785 crore.
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Asset Quality Improved:
- Gross NPA (Non-Performing Assets) came down to 3.52% from 4.54% a year earlier.
- Net NPA improved to 0.62%, down from 0.90%.
- Provisions for bad loans also reduced to ₹1,153 crore, compared to ₹1,651 crore last year.
- Provision Coverage Ratio (PCR) increased to 94.65%, up from 93.49%.
Other Key Numbers:
- Return on Assets (ROA) improved to 1.11%, up from 1.06%.
- Capital Adequacy Ratio rose to 18.3%, compared to 17.02% in June last year.
- The bank’s total business grew by 5% year-on-year to ₹22.14 lakh crore.
- Gross advances (total loans given) went up by 6.83% to ₹9.74 lakh crore.
Also Read: HDFC Bank Q1: NII, Profit May Rise by 7% Despite Margin Pressure
Summary:
Despite a slight dip in interest income and operating profit, Union Bank showed solid growth in net profit and improvement in asset quality. This indicates better loan recovery and stronger financial stability.
