Union Bank of India reported robust growth for the year ended March 31, 2026, with a net profit of INR 18,697 crore. The bank achieved an overall business growth of 5.78% year-on-year. Management emphasized a strategic shift toward CASA and retail term deposits, resulting in a healthy 15.69% CET1 ratio. Despite macroeconomic challenges, the bank remains focused on quality growth, profitability, and maintaining comfortable liquidity ratios with a 114% LCR.
Annual Financial Highlights
For the financial year ended March 31, 2026, Union Bank of India showcased resilience and strategic progress. The bank recorded a net profit of INR 18,697 crore, with interest income reaching approximately INR 1.06 lakh crore. The Board of Directors has recommended a dividend of INR 5 per equity share, representing 50% of the face value, subject to approval.
Business Growth and Portfolio Strategy
The bank’s total business expanded to INR 23.85 lakh crore, driven by a 9.74% year-on-year increase in gross advances. A core focus for the management has been the RAM (Retail, MSME, Agriculture) segment, which saw a robust 12.56% growth year-on-year. Specifically, retail advances grew by 16.75% and MSME by 18.75%. To optimize the cost of funds, the bank successfully shifted focus toward retail term deposits and CASA, with the CASA ratio improving by 2.7 percentage points compared to the previous year.
Asset Quality and Financial Health
Asset quality showed significant improvement, with the Gross NPA reducing by 78 bps year-on-year to 2.82%, and Net NPA declining by 15 bps to 0.48%. The bank’s capital position remains strong, with a CRAR of 18.10% and a CET1 ratio improving from 14.98% to 15.69%. Liquidity buffers are well-maintained, with an LCR of 114%, reflecting the bank’s cautious and efficient approach to balance sheet management.
Future Outlook
Looking ahead, the bank is targeting a credit growth of 13%-14% for FY27. Management highlighted a commitment to maintaining growth quality alongside profitability, despite global geopolitical headwinds. The bank has also set aside INR 700 crore as a prudent general provision to strengthen the balance sheet against any future contingencies, without impacting current profit or capital adequacy metrics.
Source: BSE
