Union Bank of India (UNIONBANK) Q1 25/26 earnings summary

Executive summary

• Q1 FY2026 net profit rose 12% year-over-year to INR 4,116 crore, with ROA at 1.11% and ROE above 15%.

• Global business mix reached ₹22.14 trillion, with advances at ₹9.74 trillion and deposits at ₹12.40 trillion as of June 2025.

• Operating profit for Q1FY26 was ₹6,909 crore, with net interest income at ₹9,113 crore.

• Digital initiatives, ESG efforts, and sustainability-linked products remain strategic priorities.

• Financial statements for Q1 FY26 were reviewed and approved by the Board, prepared per Indian GAAP and RBI guidelines.

Financial highlights

• Net interest margin (NIM) for Q1 FY2026 was 2.76%, down 11 bps sequentially.

• Net interest income for Q1FY26 was ₹9,113 crore, down 3.18% year-over-year.

• Gross NPA ratio improved to 3.52%, net NPA at 0.62%, and provision coverage ratio at 94.65%.

• Capital adequacy ratio strong at 18.3%, with CET-1 at 15.3%.

• Credit cost reduced to 0.47% for Q1FY26; slippage ratio below 1%.

Outlook and guidance

• Management expects double-digit RAM growth to continue in coming quarters.

• NIM expected to moderate by 20–25 bps for FY2026 compared to March 2025, with a minimum of 2.60–2.65% before recovery.

• ROA guidance remains above 1% for FY2026.

• Focus on digital transformation, ESG initiatives, and inclusive growth through government schemes.

• Continued emphasis on asset quality improvement and capital adequacy.