Union Bank of India reported robust financial performance for the third quarter ended December 31, 2025, with net profit rising 9.0% year-on-year to ₹5,016.77 crore compared to ₹4,603.63 crore in the corresponding quarter of the previous year. The bank's consolidated net profit for Q3FY26 stood at ₹5,072.69 crore, reflecting strong operational efficiency.

Financial Performance Highlights

The bank's total income for Q3FY26 reached ₹30,984.46 crore, marginally lower than ₹30,960.13 crore in Q3FY25. Interest earned remained stable at ₹26,443.41 crore compared to ₹26,543.56 crore in the same quarter last year. Other income contributed ₹4,541.05 crore during the quarter.

For the nine months ended December 31, 2025, the bank achieved net profit of ₹13,381.38 crore compared to ₹13,002.22 crore in the corresponding period, representing a growth of 2.9%.

Asset Quality Shows Marked Improvement

The bank demonstrated significant improvement in asset quality metrics during the quarter. Gross non-performing assets (NPAs) declined to ₹31,120.88 crore as of December 31, 2025, from ₹36,554.25 crore a year earlier. Fresh slippages for the quarter decreased to ₹1,660.00 crore from ₹1,980.00 crore in the previous quarter, indicating better credit quality management.

Net NPAs decreased to ₹5,102.15 crore from ₹7,568.36 crore in the same quarter last year, indicating effective recovery mechanisms and provisioning strategies.

Capital Adequacy and Profitability Ratios

The bank maintained robust capital adequacy with a Basel III ratio of 16.49% as of December 31, 2025, compared to 16.72% in the previous year. The Common Equity Tier 1 (CET1) ratio stood at 13.94%, providing adequate capital buffer for future growth.

The bank's return on assets improved to 1.35% from 1.30% year-on-year, while net profit margin expanded to 16.19% from 14.87%.

Segment Performance and Business Mix

Across business segments, Treasury Operations generated revenue of ₹7,446.20 crore in Q3FY26, while Retail Banking Operations contributed ₹12,083.79 crore. Corporate/Wholesale Banking Operations accounted for ₹10,407.56 crore in segment revenue.

The bank's advances portfolio stood at ₹9,90,865.02 crore as of December 31, 2025, compared to ₹9,20,178.24 crore in the previous year. Total deposits reached ₹12,22,855.88 crore, reflecting the bank's strong deposit mobilization capabilities.

Operational Efficiency and Cost Management

Operating expenses increased to ₹6,927.38 crore in Q3FY26 from ₹6,165.02 crore in Q3FY25, primarily driven by higher employee costs of ₹4,011.10 crore compared to ₹3,467.81 crore in the previous year. Despite higher costs, the bank maintained operational efficiency through improved asset quality and reduced provisioning requirements.

Provisions and contingencies (other than tax) decreased significantly to ₹322.23 crore from ₹1,599.05 crore in Q3FY25, reflecting the bank's improved asset quality and reduced credit risk provisions.

Union Bank of India delivered robust financial performance in the third quarter of FY26, reporting a net profit of ₹5,017 crores, marking a 9.00% increase compared to ₹4,604 crores in the same quarter last year. The bank's consolidated results showed an even stronger performance with net profit rising to ₹5,073 crores for the quarter.

Strong Financial Performance Across Key Metrics

The bank's total income for Q3FY26 reached ₹30,984 crores, showing marginal growth from ₹30,960 crores in Q3FY25. Interest earned remained stable at ₹26,443 crores compared to ₹26,544 crores in the previous year, while other income increased to ₹4,541 crores from ₹4,417 crores.

For the nine months ended December 31, 2025, the bank reported net profit of ₹13,381 crores compared to ₹13,002 crores in the corresponding period last year, representing a growth of 2.91%.

Significant Improvement in Asset Quality

Union Bank of India demonstrated substantial improvement in asset quality metrics during the quarter. Gross Non-Performing Assets (NPAs) declined significantly to 3.06% from 3.85% in the previous year, while the absolute amount of gross NPAs decreased to ₹31,121 crores from ₹36,554 crores.

The bank's provision coverage ratio improved to 95.13% as of December 31, 2025, compared to 93.42% in the previous year, indicating stronger provisioning against potential losses.

Capital Adequacy and Operational Efficiency

The bank maintained robust capital adequacy with a Basel III ratio of 16.49%, well above regulatory requirements. The Common Equity Tier 1 (CET1) ratio stood at 13.94%, providing a strong capital buffer for future growth.

Operating expenses increased to ₹6,927 crores in Q3FY26 from ₹6,165 crores in the previous year, primarily driven by higher employee costs of ₹4,011 crores compared to ₹3,468 crores last year.

Business Segment Performance

The bank's segment-wise performance showed mixed results across different business verticals. Treasury operations generated segment results of ₹1,542 crores in Q3FY26 compared to ₹858 crores in Q3FY25, while retail banking operations contributed ₹2,451 crores versus ₹2,684 crores in the previous year.

Regulatory Compliance and Risk Management

During the nine months ended December 31, 2025, the bank reported 160 fraud cases involving ₹1,844 crores with outstanding balance of ₹1,627 crores, which is fully provided for. The bank also exercised call options for redemption of ₹1,500 crores Basel III compliant bonds during the period.

Union Bank of India's Q3FY26 results reflect the bank's continued focus on improving asset quality while maintaining steady profitability. The significant reduction in NPAs and strong provision coverage ratio demonstrate effective risk management, positioning the bank well for sustained growth in the coming quarters.