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Union Bank of India reported a steady rise in profitability for the March quarter, supported by improved asset quality, even as core income and overall earnings saw a slight decline. The bank’s net profit grew by over 6 per cent year-on-year, while both gross and net NPAs continued to fall. However, lower net interest income and total income indicate margin pressure. The lender has also proposed a dividend for FY 2025–26, subject to shareholder approval. The stock reacted negatively, declining over 6 per cent in intra-day trade.
State-owned Union Bank of India reported a 6.64 per cent year-on-year increase in standalone profit after tax to INR 5,316 crore for the quarter ended March 2026, compared to INR 4,985 crore in the corresponding period of the previous financial year. Advertisement
The bank’s core income, measured as net interest income, declined marginally by 1.14 per cent to INR 9,406 crore during the quarter, reflecting some pressure on lending margins. Total income also saw a slight drop, coming in at INR 31,851.15 crore as against INR 32,752.67 crore reported in the same quarter last year, according to its regulatory filing.
On the asset quality front, the lender showed continued improvement. Gross non-performing assets reduced to 2.82 per cent from 3.6 per cent a year ago, while net NPAs declined to 0.48 per cent from 0.63 per cent. This trend aligns with the broader clean-up seen across public sector banks in recent years, supported by recoveries, write-offs, and tighter credit monitoring.
The bank’s board has recommended a dividend of INR 5 per equity share of face value INR 10 each for the financial year 2025–26. The payout remains subject to approval by shareholders.
Market sentiment remained cautious following the results, with shares of the bank falling 6.42 per cent to INR 182.2 apiece on the BSE during afternoon trading.
In recent quarters, public sector lenders, including Union Bank, have reported stronger balance sheets and improved asset quality, although margin compression has emerged as a concern amid changing interest rate cycles.
Source PTI
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