Union Bank FY26: ₹18,697 Cr Profit, ₹5 Dividend, Strong Asset Quality
Union Bank of India delivered strong FY26 performance with net profit of ₹18,697 crores and recommended ₹5 dividend per equity share. The bank achieved robust growth across key segments with total business reaching ₹23,85,502 crores, while maintaining strong asset quality with gross NPA at 2.82% and provision coverage ratio of 95.03%.
*this image is generated using AI for illustrative purposes only.
Union Bank of India has delivered strong financial performance for FY26, with the board of directors approving the audited financial results at its meeting held on April 23, 2026. The bank reported a net profit of ₹18,697 crores and recommended a dividend of ₹5 per equity share, demonstrating robust growth across key business segments. The investor presentation for Q4FY26 was also submitted under Regulation 30 of SEBI Listing Regulations.
Board Meeting and Regulatory Compliance
The board meeting commenced at 09:40 a.m. and concluded at 12:25 p.m. on April 23, 2026. As per regulatory requirements under SEBI Listing Regulations, the bank submitted comprehensive documentation including audited standalone and consolidated financial results, statement of assets and liabilities, cash flow statements, and independent auditors' reports for the year ended March 31, 2026. The presentation is also available on the bank's website at https://www.unionbankofindia.bank.in .
| Board Meeting Details: | Information |
|---|---|
| Meeting Date: | April 23, 2026 |
| Start Time: | 09:40 a.m. |
| End Time: | 12:25 p.m. |
| Company Secretary: | Ashish Mishra |
| AGM Number: | 24th Annual General Meeting |
Financial Performance Highlights
The bank achieved significant growth in its core business metrics during FY26. Total business increased by 5.78% year-on-year to ₹23,85,502 crores, driven by strong advances growth of 9.74% YoY. Interest income stood at ₹1,05,992 crores for the financial year. Operating profit for FY26 reached ₹28,620 crores, while net interest income was ₹36,659 crores.
| Financial Metrics: | FY26 | FY25 | YoY Growth (%) |
|---|---|---|---|
| Net Profit: | ₹18,697 crores | ₹17,987 crores | 3.95% |
| Total Business: | ₹23,85,502 crores | ₹22,55,141 crores | 5.78% |
| Gross Advances: | ₹10,78,611 crores | ₹9,82,894 crores | 9.74% |
| Global Deposits: | ₹13,06,891 crores | ₹12,72,247 crores | 2.72% |
| Interest Income: | ₹1,05,992 crores | ₹1,05,909 crores | 0.08% |
| Operating Profit: | ₹28,620 crores | ₹31,090 crores | -7.94% |
| Net Interest Income: | ₹36,659 crores | ₹37,214 crores | -1.49% |
Strong Performance in Priority Segments
The bank demonstrated exceptional growth in its Retail, Agriculture, and MSME (RAM) segments, which increased by 12.56% YoY. RAM advances now constitute 57.49% of domestic advances, reflecting the bank's strategic focus on priority lending sectors.
| RAM Segment Performance: | FY26 | FY25 | YoY Growth (%) |
|---|---|---|---|
| Retail Advances: | ₹2,53,083 crores | ₹2,16,777 crores | 16.75% |
| MSME Advances: | ₹1,62,007 crores | ₹1,36,423 crores | 18.75% |
| Agriculture Advances: | ₹1,83,394 crores | ₹1,78,479 crores | 2.75% |
| Total RAM Advances: | ₹5,98,484 crores | ₹5,31,679 crores | 12.56% |
Dividend Recommendation and Statutory Approvals
The board has recommended a dividend of ₹5 per equity share of ₹10 face value each for FY26, representing 50% of the face value. This dividend recommendation is subject to obtaining necessary statutory approvals and shareholder consent at the upcoming 24th Annual General Meeting. The date of AGM and book closure details will be communicated in due course.
| Dividend Details: | Information |
|---|---|
| Dividend Per Share: | ₹5 |
| Face Value: | ₹10 |
| Dividend Percentage: | 50% of face value |
| AGM Required: | 24th Annual General Meeting |
| Status: | Subject to statutory approvals |
Asset Quality and Capital Strength
The bank continued its asset quality improvement trajectory with gross NPA reducing by 78 basis points YoY to 2.82% and net NPA declining by 15 basis points to 0.48%. The provision coverage ratio remained strong at 95.03%, while maintaining a robust capital adequacy ratio of 18.10% and CET-1 ratio of 15.69%. Credit cost for FY26 improved significantly to 0.23% from 0.77% in the previous year.
| Asset Quality Metrics: | March 2026 | March 2025 | Change (bps) |
|---|---|---|---|
| Gross NPA (%): | 2.82% | 3.60% | -78 |
| Net NPA (%): | 0.48% | 0.63% | -15 |
| Provision Coverage Ratio (%): | 95.03% | 94.61% | +42 |
| CRAR (%): | 18.10% | 18.02% | +8 |
| CET-1 Ratio (%): | 15.69% | 14.98% | +71 |
Network and Operational Strength
The bank operates through an extensive network with 8,697 total branches and 8,656 ATMs across the country. The branch distribution is well-balanced with 30% in rural areas, 30% in semi-urban, 20% in urban, and 20% in metro regions. The bank has 73,885 employees including 6,198 specialized employees. The bank plans to expand its branch network with 100 new branches in FY25-26 and 200 branches in FY26-27.
| Network Details: | Information |
|---|---|
| Total Branches: | 8,697 |
| Total ATMs: | 8,656 |
| Total Employees: | 73,885 |
| Specialized Employees: | 6,198 |
| Planned Expansion FY25-26: | 100 branches |
| Planned Expansion FY26-27: | 200 branches |
Historical Stock Returns for Union Bank of India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.51% | -6.10% | +4.99% | +23.91% | +36.89% | +441.28% |
How will Union Bank's aggressive branch expansion plan of 300 new branches over the next two years impact its operational costs and market share in rural and semi-urban segments?
What strategies might Union Bank implement to reverse the declining trend in operating profit and net interest income while maintaining strong credit growth?
Will Union Bank's improved asset quality metrics and low credit cost of 0.23% be sustainable as the bank continues its aggressive lending growth in RAM segments?
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