Union Bank of India Q1 Results: Net profit rises 12% YoY to Rs 4,111 crore, NII down 3.2% YoY, asset quality improves

Union Bank of India reported its standalone financial results for the quarter ended June 30, 2025, showing a steady improvement in profitability and asset quality despite a decline in net interest income (NII).

For Q1 FY26, the bank’s net profit rose to ₹4,111 crore, up about 12% YoY from ₹3,688 crore in the same quarter last year. Sequentially, profit was slightly lower compared to ₹4,983 crore in Q4 FY25.

Total income for the quarter stood at ₹31,784 crore, up from ₹30,877 crore in Q1 FY25. Operating profit came in at ₹6,908 crore, down from ₹7,786 crore a year earlier.

Net interest income (NII), however, fell by 3.2% YoY, coming in at ₹9,112.6 crore compared to ₹9,412 crore in the year-ago period. This reflects some margin pressures despite healthy credit growth.

On the expenses side, total expenditure increased to ₹24,873 crore from ₹23,088 crore a year ago, largely due to higher interest and operating expenses. Provisions and contingencies fell sharply to ₹1,664 crore in Q1 FY26 from ₹2,756 crore in Q1 FY25, supporting the bottom line.

Improvement in asset quality

Union Bank’s gross non-performing assets (GNPAs) fell to ₹34,311 crore as of June 30, 2025, compared to ₹41,423 crore a year ago. Gross NPA ratio improved to 3.52%, down from 4.54% a year earlier.

Similarly, net NPAs dropped to ₹5,874 crore from ₹7,902 crore, with the net NPA ratio improving to 0.62% from 0.90% a year earlier.

Key highlights:

• Net Profit: ₹4,111 crore (up from ₹3,688 crore YoY)

• NII: ₹9,112.6 crore (down 3.2% YoY from ₹9,412 crore)

• Operating Profit: ₹6,908 crore (down from ₹7,786 crore YoY)

• Total Income: ₹31,784 crore (up from ₹30,877 crore YoY)

• Gross NPA ratio: 3.52% (vs 4.54% YoY)

• Net NPA ratio: 0.62% (vs 0.90% YoY)

The results reflect Union Bank’s continued focus on improving asset quality and sustaining profitability, despite rising expenses and margin pressures.

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