Union Bank's profit dips 10% as bad loans improve
Union Bank of India saw its profit fall 10% this quarter, landing at ₹4,249 crore.
The main reasons? Lower income from its core business and less money recovered from old loans.
On the bright side, the bank's non-performing assets (basically, bad loans) improved to 3.29%, helped by fewer new problem loans cropping up.
Loan growth under 5% as net interest income dips
Net interest income—the money banks make from lending—dipped by 2.6%, with overall loan growth staying under 5%.
Other sources of income also shrank, especially profits from selling investments.
Even so, Union Bank's capital position remains solid at 17.07%.
Looking ahead, CEO Asheesh Pandey says they're aiming for more retail loans and aspiring for an 8-10% growth in lending for FY26—but the market didn't love these results: shares dropped 2.6% after the news.