Union Bank of India's Q1 profit jumps 12% to ₹4,116cr
What's the story
State-owned Union Bank of India has reported a 12% increase in its net profit for the first quarter of FY26. The bank's net profit stood at ₹4,116 crore during this period, compared to ₹3,679 crore in the same quarter last fiscal. The Mumbai-based lender also saw its total income rise to ₹31,791 crore during the June quarter, from ₹30,874 crore in the year-ago period.
Financial details
Interest earnings improve, NII and operating profit decline
Union Bank of India's interest earnings improved to ₹27,296 crore from ₹26,364 crore in the June quarter of FY25. However, the bank's net interest income (NII) witnessed a decline to ₹9,113 crore during this quarter as opposed to ₹9,412 crore last year. The bank's operating profit also fell by 11% to ₹6,909 crore from ₹7,785 crore in the same quarter of the previous fiscal year.
Asset performance
Provisions for bad loans reduce
The bank's asset quality improved with gross non-performing assets (NPAs) declining to 3.52% of gross advances at the end of the June quarter from 4.54% a year ago. Its net NPAs or bad loans also fell to 0.62% against 0.90% in the same period last year. Consequently, provisions for bad loans reduced to ₹1,153 crore during Q1 compared to ₹1,651 crore last year.
Growth indicators
Capital adequacy ratio improves
The bank's capital adequacy ratio improved to 18.3% from 17.02% in the same quarter of FY25. The total business of the bank also grew by 5% to ₹22,14,422 crore from ₹21,08,762 crore at the end of June 2024. These figures indicate a positive trend in Union Bank's financial performance and stability over the past year.