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.

Union Bank of India has delivered a mixed performance in the third quarter, combining solid profit growth and enhanced asset quality metrics with a decline in interest income. The bank's latest results demonstrate effective management strategies across profitability and risk parameters, though revenue pressures remain evident in the competitive banking environment.

Financial Performance Overview

The bank's third quarter results showcase strong growth in profitability metrics alongside improved asset quality indicators, though interest income faced headwinds. The financial performance reflects the bank's strategic focus on sustainable growth while maintaining operational efficiency amid challenging market conditions.

Asset Quality Improvement

Union Bank of India demonstrated significant improvement in asset quality parameters during the third quarter. The bank's non-performing asset ratios showed positive movement, indicating effective risk management and recovery strategies that continue to strengthen the balance sheet.

Revenue and Profitability Analysis

Despite achieving net profit growth of 8.6% to ₹5,000.00 crores from ₹4,603.00 crores in the corresponding quarter of the previous year, the bank faced pressure on interest income. Interest earnings declined to ₹26,440.00 crores from ₹26,960.00 crores, representing a 1.9% year-on-year decrease of ₹520.00 crores.

The Gross NPA ratio improved to 3.06% from 3.29% on a quarter-on-quarter basis, while the Net NPA ratio declined to 0.51% from 0.55%. These improvements indicate successful credit risk management and portfolio quality enhancement efforts.

Banking Sector Positioning

The contrasting trends in profitability growth and interest income decline reflect the complex operating environment facing the banking sector. Union Bank of India's ability to maintain profit growth despite revenue pressures demonstrates effective cost management and operational efficiency. The continued improvement in asset quality metrics, combined with sustained profitability, positions the bank strategically within the competitive banking landscape while highlighting the importance of diversified revenue streams and prudent risk management.