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Informist, Wednesday, Jul. 15, 2026

 

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--Union Bank Apr-Jun net profit INR 53.32 bln 
--Analysts saw Union Bank Apr-Jun net profit INR 45.73 bln 
--Union Bank Apr-Jun net profit INR 53.32 bln vs INR 41.16 bln year ago 
--Union Bank Apr-Jun total income INR 318.06 bln vs INR 314.05 bln year ago 
--Union Bank Apr-Jun provisions INR 9.79 bln vs INR 16.65 bln year ago 
--Union Bank Apr-Jun NPA provisions INR 10.20 bln vs INR 11.53 bln year ago 
--Union Bank gross NPA ratio 2.65% on Jun 30 vs 2.82% qtr ago 
--Union Bank net NPA ratio 0.47% on Jun 30 vs 0.48% qtr ago 
--Union Bank Basel III capital adequacy ratio 18.46% on Jun 30 
--Union Bank provision coverage ratio 95.05% on Jun 30 
--Union Bank Apr-Jun net interest margin 2.80% vs 2.64% qtr ago 
--Union Bank Apr-Jun net interest income INR 100.37 bln, up 10.2% on year 
--Union Bank Apr-Jun credit cost 0.38% vs 0.16% qtr ago 
--Union Bank Apr-Jun cost of deposits 5.05% vs 5.23% qtr ago 
--Union Bank Apr-Jun yield on advances 7.90% vs 7.98% qtr ago 
--Union Bank Apr-Jun fresh slippages INR 20.62 bln vs INR 21.99 bln yr ago 
--Union Bank Apr-Jun write-offs INR 22.73 bln vs INR 20.76 bln year ago

 

By Diksha Tripathy 

 

MUMBAI – Union Bank of India posted its biggest on-year growth in net profit in five quarters in the June quarter, beating the Street's estimate, on the back of a slump in provisions. A fall in interest expenses also aided the bottom line. 

 

The net profit of the bank rose nearly 30% on year to INR 53.32 billion, as against the analysts' estimate of INR 45.73 billion. On a sequential basis, the profit recorded a marginal growth.

 

For the June quarter, the provisions of Union Bank fell over 41% on year to INR 9.79 billion, as against INR 16.65 billion in the corresponding quarter of the previous year. Provisions were down over 7% on a quarterly basis.   

 

The total expenses of the bank fell almost 3% on year to INR 238.04 billion for the June quarter. Of this, the interest expenses were down nearly 4% on year to INR 171.66 billion.

 

For the June quarter, the total income of the bank was INR 318.06 billion, up over 1% on year but marginally down on a sequential basis. Union Bank's net interest income-–the difference between interest earned and interest expended--was up over 10% on year to INR 100.37 billion for the June quarter. The net interest margin of the bank for Apr-Jun rose to 2.80%, as against 2.64% from the trailing quarter. 

 

Union Bank's asset quality improved in the June quarter on the back of a fall in provisions. The gross non-performing asset ratio was at 2.65% of Jun. 30, down from 2.82% in the trailing quarter and 3.52% a year ago. Union Bank's net NPA ratio as of Jun. 30 was 0.47%, marginally down from 0.48% a quarter ago and 0.62% a year ago.

 

The lender's provision coverage ratio was 95.05% as of Jun. 30, against 95.03% a quarter ago. The bank's provisions for NPAs fell to INR 10.20 billion, down from INR 11.53 billion a year ago.

 

Fresh slippages fell to INR 20.62 billion from INR 21.99 billion in the year-ago quarter. However, the bank's write-offs rose to INR 22.73 billion, as against INR 20.76 billion a year ago. The credit cost rose marginally to 0.38% in the June quarter, from 0.16% in the March quarter. 

 

 

Union Bank's gross advances grew almost 13% on year and nearly 2% on quarter to INR 10.96 trillion in the June quarter. Of this, retail advances grew over 12% on year to INR 2.57 trillion in the June quarter, while advances to micro, small and medium enterprises grew the fastest in the total loan book at 16.5% on year to INR 1.68 trillion. Agriculture loans grew almost 7% on year to INR 1.83 trillion in the June quarter, while overseas advances was the only segment which saw contraction on an annual basis, falling over 3% on year to INR 352.03 billion. The bank's Apr-Jun yield on advances was at 7.90%, marginally down from 7.98% in the March quarter.  

 

Deposits grew 3.5% on year to INR 12.83 trillion for the June quarter. On a sequential basis, the deposits fell nearly 2%. The bank's cost of deposits was 5.05%, down from 5.23% from the trailing quarter. Current account and savings account ratio fell 11 basis points on quarter to 35.09%. It was up 258 bps on year. 

 

Following the June quarter earnings, shares of Union Bank rose and were nearly 1% higher at INR 172.29 on the National Stock Exchange, at 1335 IST.  End

 

Edited by Akul Nishant Akhoury

 

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