THEBUSINESSBYTES
BUREAU
MUMBAI,
JANUARY 14, 2026
Union Bank of
India posted a strong financial and operational performance in the third
quarter of FY26, as the Board of Directors approved the Bank’s accounts for the
quarter ended December 31, 2025, reflecting steady growth, healthy
profitability and continued improvement in asset quality.
The Bank
reported a net profit of ₹5,017 crore for Q3FY26, underscoring
the momentum in earnings. Interest income during the quarter stood at ₹26,443
crore, supported by balanced growth in advances and deposits along with
improved returns. The Bank’s overall business expanded by 5.04 per cent
year-on-year, with gross advances registering a robust growth of 7.13 per cent,
while total deposits rose by 3.36 per cent. As of December 31, 2025, Union Bank
of India’s total business stood at ₹22,39,740
crore.
Deposit
mobilisation remained steady, with global deposits increasing by 3.36 per cent
year-on-year to reach ₹12,22,856 crore, reflecting
sustained customer confidence across geographies. The Bank also continued to
strengthen its core lending segments, with the Retail, Agriculture and MSME (RAM)
portfolio recording an impressive growth of 11.50 per cent year-on-year. Within
this, retail advances grew by 21.67 per cent and MSME advances by 19.75 per
cent, taking RAM advances to 58.84 per cent of domestic advances.
Asset quality
metrics showed notable improvement during the quarter. Gross NPA declined by 79
basis points year-on-year to 3.06 per cent, while Net NPA reduced by 31 basis
points to 0.51 per cent as on December 31, 2025, highlighting effective credit
monitoring and recovery efforts.
The Bank’s
capital position remained strong, with the Capital to Risk-Weighted Assets
Ratio (CRAR) at 16.49 per cent. The CET-1 ratio improved to 13.94 per cent as
on December 31, 2025, from 13.59 per cent a year earlier, providing adequate
headroom for future growth.
Profitability
indicators further strengthened during the quarter, with Return on Assets at
1.35 per cent and Return on Equity at 17.09 per cent for Q3FY26, reinforcing
Union Bank of India’s position as a resilient and growth-oriented public sector
lender.
