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.

Post-Earnings Call Transcript Submission

The bank has submitted the transcript of the post-earnings call held on April 23, 2026, for audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. This submission was made under Regulation 46(2)(oa) and Regulation 30 read with Schedule III, Part A, Para A, 15(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transcript is available on the bank's website at https://www.unionbankofindia.bank.in/en/common/financial-results .

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.

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.

Management Commentary and Strategic Outlook

During the earnings call, Managing Director and CEO Shri Asheesh Pandey highlighted the bank's strategic focus on growth with quality and profitability. The management emphasized maintaining strong asset quality while pursuing industry-plus growth rates. The bank targets 13%-14% credit growth going forward, with continued focus on defending net interest margins and improving operational efficiency.

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.

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 payout ratio stands at 20.61%.

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.

A whistleblower complaint has been submitted to the Reserve Bank of India alleging serious irregularities in deposit reporting practices at Union Bank of India . The letter raises concerns about potential manipulation of financial reporting that could have wider implications for the banking sector.

Allegations Against Union Bank

The whistleblower letter specifically alleges that Union Bank of India engaged in quarter-end deposit window dressing practices to artificially inflate its Current Account and Savings Account (CASA) figures. CASA deposits are a crucial metric for banks as they represent low-cost funds that improve profitability margins.

Broader Banking Sector Concerns

The allegations extend beyond Union Bank of India, with the whistleblower raising concerns that similar reporting practices may be prevalent across the banking industry. This suggests potential systemic issues in how banks report their deposit figures, particularly around quarter-end periods when financial results are compiled.

Regulatory Implications

Window dressing practices involve temporarily inflating certain financial metrics to present a more favorable picture during reporting periods. If substantiated, such practices could:

• Mislead investors and stakeholders about the bank's actual financial position
• Distort market assessments of banking sector health
• Prompt regulatory scrutiny of reporting practices across the industry

The submission of this complaint to the Reserve Bank of India indicates the seriousness of the allegations and the potential need for regulatory investigation into these practices.