Union Bank of India (UBoI) reported a 7 per cent year-on-year (y-o-y) increase in fourth quarter (Q4FY26) standalone net profit at ₹5,316 crore on the back of a decline in operating expenses, sharply lower loan loss provisions, and write-back in provisions on standard assets.
The public sector bank reported a net profit of ₹4,985 crore in the year-ago quarter (Q4FY25). The bank’s board recommended a dividend of ₹5 per equity share of ₹10 each for FY26.
In FY26, UBoI reported a 4 per cent y-o-y increase in net profit at ₹18,697 crore (₹17,987 crore in FY25).
In the reporting quarter, the bank’s net interest income (NII) (difference between interest earned and interest expended) was marginally lower at ₹9,406 crore (₹9,514 crore in the year-ago period).
Other income, including fee-based income, treasury income, recovery in written-off account and interest on income-tax refund, declined about 3 per cent to ₹5,412 crore (₹5,559 crore).
As at March-end 2026, global deposits and advances increased by 3 per cent y-o-y (to ₹13,06,891 crore) and 10 per cent y-o-y (to ₹10,78,611 crore), respectively.
Asheesh Pandey, MD & CEO, noted that the bank shed bulk term deposits aggregating about ₹70,000 crore during the reporting FY even as CASA (current account, savings account) plus retail term deposits increased by about ₹1.05 lakh crore.
He emphasised that the bank has built-up a corporate loan pipeline of about ₹55,000 crore. CASA deposits rose to 35.21 per cent of domestic deposits from 33.51 per cent.
With credit growth outpacing deposit growth, the Bank added bulk term deposits aggregating ₹22,904 crore in the reporting quarter. Pandey expects advances and deposits to grow 13-4 per cent and 8-9 per cent, respectively.
NPAs decline
While provisioning for non-performing assets (NPAs) declined to ₹423 crore (against ₹1,676 crore in Q4FY25), provision for non-performing investments was at ₹176 crore (against a write-back of ₹18 crore). The bank received a higher write-back of ₹252 crore (₹183 crore) from provision on standard assets.
UBoI made a one-time “other standard asset” provision of ₹700 crore considering the likely impact of the West Asia war on MSME loans.
Net interest margin (NIM) declined to 2.64 per cent in Q4FY26 against 2.87 per cent in the year-ago period.
Gross non-performing assets’ (NPAs) position improved to 2.82 per cent of gross advances as at March-end 2026 against 3.60 per cent as at March-end 2024. Net NPAs position too improved to 0.48 per cent of net advances against 0.63 per cent.
Within overall advances, RAM (retail, agriculture and MSME) advances and large corporate advances were up by 12.56per cent and 6.39 per cent, respectively.
UBoI shares closed at ₹179.65apiece, down 7.4 per cent over the previous close on BSE.
Published on April 23, 2026