Union Bank Q1FY26 results: PAT rises 12% to ₹4,116 cr despite lower NII

Union Bank of India reported a 12% rise in net profit to ₹4,116 crore for Q1FY26, despite a decline in net interest income. Total income rose to ₹31,791 crore, while interest earned improved to ₹27,296 crore. The bank's asset quality improved with gross NPAs declining to 3.52% and net NPAs falling to 0.62%. Provisions for bad loans also declined to ₹1,153 crore.

Union Bank of India (UBI) has reported a 12% rise in net profit to ₹4,116 crore for the first quarter of the current financial year (Q1 FY26), despite a decline in net interest income. The bank's total income rose to ₹31,791 crore, with interest earned improving to ₹27,296 crore. Notably, the bank's asset quality showed significant improvement, with gross non-performing assets (NPAs) declining to 3.52% and net NPAs falling to 0.62%. Provisions for bad loans also decreased to ₹1,153 crore.

The bank's net interest income declined to ₹9,113 crore during the quarter, down from ₹9,412 crore a year ago. This was primarily due to a 3.53% year-on-year (YoY) increase in interest income, which was offset by a 4.22% quarter-on-quarter (QoQ) decline in net interest income. The bank's operating profit dropped 11% to ₹6,909 crore, reflecting concerns related to core business operations.

However, the bank's asset quality improved significantly, with gross NPAs declining to 3.52% and net NPAs falling to 0.62%. Provisions for bad loans decreased to ₹1,153 crore, indicating a healthier balance sheet. The bank's Return on Assets (ROA) rose to 1.11%, and its Return on Equity (RoE) stood at 15.15%, demonstrating sound fundamentals.

Union Bank's total business grew by 5% to ₹22,14,422 crore, with gross advances rising 6.83% and total deposits growing 3.63%. The bank's countrywide presence expanded, with 8,649 branches, 8,976 ATMs, and over 24,900 business correspondent (BC) sites as of June 30, 2025.

Overall, Union Bank of India's Q1 FY26 results reflect a mixed performance, with strong asset quality and total business growth offset by a decline in net interest income and operating profit. The bank's improved asset quality and sound fundamentals provide a solid foundation for future growth.

References:
[1] https://www.business-standard.com/pti-stories/national/union-bank-of-india-logs-12-pc-rise-in-net-profit-to-rs-4-116-cr-in-q1-125071900567_1.html
[2] https://www.goodreturns.in/news/union-bank-of-india-q1-results-net-profit-rises-12-on-strong-interest-income-asset-quality-streng-1443789.html