Union Bank of India Improves Asset Quality, Reports Profitable Quarter

Union Bank of India reported a 9.83% rise in consolidated profit after tax for the March quarter, driven by lower provisions and improved asset quality. Core net interest income declined, while credit growth underperformed industry averages. Asset quality improved, with gross NPA ratio dropping significantly.

The state-owned Union Bank of India announced a notable 9.83% increase in consolidated profit after tax for the March quarter, totaling Rs 5,503.61 crore. This growth comes amid lower provisioning requirements and enhanced asset quality. The bank's standalone profit also showed a 6.6% year-on-year increase, reaching Rs 5,316 crore for the period.

However, Union Bank of India faced a 1.14% decline in core net interest income, with margins narrowing. Despite this, the bank aims to catch up to the industry's credit growth rate in the upcoming financial years. Managing Director and CEO Asheesh Pandey is optimistic about the bank's Rs 55,000 crore corporate loan book pipeline.

Asset quality improvements were evident, with the gross non-performing asset ratio reducing to 2.82% by the end of March 2026. The board has recommended a dividend of Rs 5 per share for the fiscal year 2025-26, pending shareholder approval. Nonetheless, Union Bank's share value declined 7.40% to Rs 179.65 on the BSE by Thursday's close.