Union Bank of India reports ₹5,017 crore net profit in Q3FY26; asset quality and profitability improve
Net Interest Margin rises to 2.76%; Gross NPA declines to 3.06%, ROE strengthens to 17.09%
Union Bank of India on Tuesday said its Board of Directors has approved the financial results for the quarter ended December 31, 2025 (Q3FY26), reporting a net profit of ₹5,017 crore, marking a strong quarter-on-quarter growth of 18.07%.
The bank’s interest income stood at ₹26,443 crore during the quarter, while Net Interest Income (NII) increased by 5.85% QoQ to ₹9,328 crore, supported by improvement in margins and reduction in cost of deposits.
Steady business growth
The bank’s total business grew by 5.04% year-on-year to ₹22.40 lakh crore as on December 31, 2025. Gross advances rose by 7.13% YoY to ₹10.17 lakh crore, while global deposits increased by 3.36% YoY to ₹12.23 lakh crore.
CASA deposits stood at ₹4.15 lakh crore, registering a YoY growth of 5%, with domestic CASA ratio improving to 33.96%. The credit-deposit ratio increased to 83.89%.
Strong traction in RAM portfolio
Union Bank continued to strengthen its Retail, Agriculture and MSME (RAM) portfolio, which grew by 11.50% YoY to ₹5.77 lakh crore. Retail advances surged by 21.67% YoY, while MSME advances rose by 19.75%. RAM advances now account for 58.84% of domestic advances, reflecting the bank’s focus on granular and secured lending.
Asset quality improves further
The bank reported a significant improvement in asset quality, with Gross NPA ratio declining by 79 basis points YoY to 3.06%, while Net NPA reduced to 0.51%. Provision Coverage Ratio (PCR) stood strong at 95.13%, and credit cost declined sharply to 0.09% during the quarter.
Profitability and capital position
Return on Assets (RoA) improved to 1.35% and Return on Equity (RoE) rose to 17.09% in Q3FY26. Net Interest Margin (NIM) increased to 2.76%, while cost of deposits declined to 5.31%.
Capital adequacy remained comfortable, with CRAR at 16.49% and CET-1 ratio improving to 13.94% as on December 31, 2025.
Financial inclusion and social initiatives
During the quarter, the bank enrolled 3.53 lakh new customers under PMJJBY and 10.34 lakh under PMSBY. Under PMJDY, Union Bank has opened 3.37 crore accounts with balances of ₹14,498 crore. Additionally, 2.85 lakh new enrollments were recorded under the Atal Pension Yojana during the quarter.
The bank also sanctioned 3,576 loans amounting to ₹611 crore under the Union Nari Shakti Scheme for women entrepreneurs.
Focus on green financing
Union Bank continued to support sustainable development, with cumulative sanctions of ₹34,967 crore to the renewable energy sector and ₹1,637 crore under the Union Green Miles initiative as on December 31, 2025.
With a nationwide network of 8,671 branches, 8,300 ATMs and over 26,500 BC points, Union Bank of India remains focused on profitable growth, balance sheet strength and inclusive banking.
