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Informist, Thursday, Apr. 23, 2026

 

By J. Navya Sruthi

 

MUMBAI - Union Bank of India's net profit for the March quarter rose due to a fall in overall provisions and provisions made for non-performing assets. Fall in total expenditure also supported the bank's operating profit. The total income of the lender fell marginally due to lower interest income.   

 

The bank's bottom line for the reporting quarter rose nearly 7% on year and nearly 6% on quarter to INR 53.16 billion. The state-owned bank's net profit beat analysts' expectations. Brokerages had expected the bank's net profit to fall nearly 10% on year to INR 44.96 billion for the March quarter.

 

The bank's total income fell nearly 3% on year to INR 318.51 billion in the March quarter. The net interest income for the March quarter was up nearly 1% on quarter at INR 94.06 billion. Analysts estimated the bank's net interest income for the March quarter to rise over 1% on year and 3% on quarter to INR 96.21 billion.

 

The bank's provisions for non-performing assets fell nearly 75% on year to INR 4.23 billion in the reporting quarter. The lender's total provisions, excluding provisions made for tax, fell nearly 32% on year to INR 10.55 billion. The net non-performing assets ratio was 0.48% as on Mar. 31, down from 0.51% a quarter ago and 0.63% a year ago. The gross non-performing assets ratio was 2.82% as on Mar. 31, down from 3.06% a quarter ago and 3.60% in the year-ago period. 

 

The bank's net interest margin was 2.64% in the March quarter, down from 2.76% a quarter ago. Its cost of deposits was 5.23%, down from 5.31% in the previous quarter, while credit cost rose to 0.16% in the reporting quarter from 0.09% quarter ago. The current account savings account ratio was 35.21% as on Mar. 31, up from 33.94% quarter ago. The bank's yield on advances fell to 7.98% in the March quarter from 8.27% a quarter ago.

 

The lender's Basel III capital adequacy ratio was 18.10% as on Mar. 31, while its provision coverage ratio was 95.03%.  

 

The bank's interest-related expenses fell nearly 4% on year to INR 170.33 billion, while operating expenses were down nearly 7% on year at INR 68.63 billion. The total expenses, excluding provisions and contingencies were down nearly 5% on year at INR 238.96 billion. 

 

Moving to the bank's performance for financial year ended Mar. 31, its gross advances rose 9.7% on year to INR 10.79 trillion while the total business was up nearly 6% on year at INR 23.86 trillion. Its gross deposits were up nearly 2.7% on year at INR 13.07 trillion. The net profit for 2025-26 (Apr-Mar) was INR 186.97 billion, up nearly 4% on year, on a total income of INR 1.25 trillion, down 0.2% on year.  

 

Union Bank's board approved a dividend of INR 5 per share. At 1402 IST, shares of Union Bank of India  traded at INR 179.31 on the National Stock Exchange, down nearly 8% over Wednesday.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Vandana Hingorani

 

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