Union Bank of India (UNIONBANK) Q4 25/26 earnings summary

Executive summary

• Net profit for FY26 reached ₹18,697 crore, up 3.95% year-over-year, with Q4 FY26 profit at ₹5,316 crore.

• Board recommended a dividend of ₹5 per share (50% of face value), subject to approvals.

• Business growth was 5.78% YoY, with gross advances up 9.74% and deposits up 2.72% YoY.

• Maintained strong capital and liquidity positions, with all regulatory ratios comfortably met and unmodified audit opinions.

• Focused on improving CASA and retail term deposits, shifting away from bulk deposits.

Financial highlights

• Gross NPA reduced to 2.82% and net NPA to 0.48% as of March 2026.

• CRAR improved to 18.10% standalone and 18.78% consolidated; CET1 ratio at 15.69%.

• ROA at 1.25% and ROE at 15.86% for FY26.

• Provision coverage ratio at 95.03%; credit cost reduced to 0.23% for FY26.

• Standalone EPS for FY26 was ₹24.49; consolidated EPS was ₹25.45.

Outlook and guidance

• Targeting 13%-14% credit growth for FY27, aiming to outperform industry average.

• NIM expected to be defended at current levels (2.64%) or improved, supported by CASA and retail term deposit growth.

• Board approved a ₹6,000 crore capital plan for FY26, including equity and Tier 1/Tier 2 capital.

• Dividend of ₹5 per share recommended for FY 2025-26, pending statutory and shareholder approvals.

• Focus remains on quality growth, profitability, and maintaining strong asset quality.