Union Bank of India Announces Robust Q1 FY26 Performance

Union Bank of India has reported a 12% increase in net profit for the April–June quarter of FY26, reaching Rs 4,116 crore, up from Rs 3,679 crore in the same period last year.

Financial Highlights

Total income saw an uptick to Rs 31,791 crore in Q1 FY26 from Rs 30,874 crore a year ago. Interest income also rose to Rs 27,296 crore from Rs 26,364 crore in the corresponding period of FY25.

Despite these gains, the bank experienced a decline in net interest income, which fell to Rs 9,113 crore from Rs 9,412 crore, and an 11% drop in operating profit to Rs 6,909 crore from Rs 7,785 crore in Q1 FY25.

Asset Quality and Provisions

The bank's asset quality showed notable improvement, with gross non-performing assets (GNPAs) decreasing to 3.52% from 4.54%, and net NPAs falling to 0.62% from 0.90% year-on-year.

Provisions for bad loans decreased to Rs 1,153 crore from Rs 1,651 crore, and the provision coverage ratio (PCR) improved to 94.65%, up by 116 basis points.

Growth Metrics

Return on Assets (ROA) increased to 1.11%, and the capital adequacy ratio stood at 18.3%, up from 17.02% last year. The bank's total business grew by 5% to Rs 22,14,422 crore, with gross advances rising by 6.83% to Rs 9,74,489 crore.