Union Bank of India (UNIONBANK) Q4 24/25 earnings summary

Executive summary

• Achieved record annual net profit of ₹17,987 crore for FY 2025, up 31.79% YoY; Q4 net profit at ₹4,985 crore, up 50.58% YoY.

• Operating profit for FY 2025 reached ₹31,090 crore, a 10.21% YoY increase.

• Board recommended a dividend of ₹4.75 per equity share (47.5%) for FY 2025, subject to approvals.

• Maintained strong capital adequacy at 18.02% and CET1 at 14.98%, well above regulatory requirements.

• Digital initiatives and ESG focus continued, with significant growth in digital lending and sustainability-linked financing.

Financial highlights

• Net Interest Income for FY 2025 was ₹37,214 crore, up 1.76% YoY; non-interest income surged 23% YoY.

• Net Interest Margin for FY 2025 at 2.91%, within guided range of 2.8%-3%.

• Credit growth moderated to 8.62% YoY, below guidance of 11%-13%; deposit growth at 7.22% YoY, below 9%-11% guidance.

• Gross NPA ratio declined to 3.60% from 4.76% YoY; Net NPA at 0.63% from 1.03% YoY; provision coverage at 94.61%.

• Recognized ₹787 crore profit from NARCL SR revaluation in Q4.

Outlook and guidance

• No formal business growth or margin guidance provided due to market volatility and macroeconomic uncertainty.

• Management expects credit growth to align with GDP growth (approx. 6%) and inflation (3.5%-4%) for FY 2026.

• Margins expected to face downward pressure from RBI rate cuts, but efforts underway to manage deposit costs and maintain NIM.

• Recovery performance in FY 2026 expected to improve, pending NCLT case resolutions.

• Focus remains on asset quality improvement, digital banking expansion, and prudent capital management.