Union Bank of India reported a 3.95% increase in net profit at ₹18,697 crore for the year ended March FY26, supported by improved asset quality and steady business growth.
Interest income stood at ₹1,05,992 crore during the year. However, net interest income (NII) declined 1.49% to ₹36,659 crore, while net interest margin (NIM) contracted by 21 basis points to 2.70%.
Asset quality improves
Gross non-performing assets (GNPA) declined by 78 basis points to 2.82% from 3.60%, while net NPA reduced by 15 basis points to 0.48% from 0.63%.
Provision coverage ratio improved by 42 basis points to 95.03%, indicating stronger balance sheet resilience.
Capital, business growth
The bank’s capital adequacy ratio improved marginally to 18.10% from 18.02%.
Total business grew 5.78% to ₹23,85,502 crore. Gross advances rose 9.74% to ₹10,78,611 crore, while total deposits increased 2.72% to ₹13,06,891 crore.
Deposit, CASA trends
Global deposits stood at ₹13,06,891 crore, up 2.72%. CASA deposits grew 7.92% to ₹4,60,077 crore, while cost of deposits declined by 13 basis points to 5.39%.
RAM segment drives growth
The Retail, Agriculture and MSME (RAM) segment expanded 12.56%, with retail advances growing 16.75% to ₹2,53,083 crore, MSME advances rising 18.75% to ₹1,62,007 crore, and agriculture advances increasing 2.75% to ₹1,83,394 crore.
RAM advances accounted for 57.49% of gross domestic advances.
Returns, dividend
Return on assets (RoA) stood at 1.25%, while return on equity (RoE) was at 15.86%.
The board has recommended a dividend of ₹5 per equity share.