Union Bank of India has released its provisional business update for the quarter ended December 31, 2025, demonstrating steady growth across key business metrics. The state-owned bank reported encouraging performance in its lending portfolio, with particular strength in retail, agriculture, and MSME segments, alongside improved deposit quality metrics.

Advances Portfolio Performance

The bank's lending business showed robust growth momentum during the quarter. The advances portfolio delivered strong year-on-year growth across all segments:

The RAM (Retail, Agriculture, and MSME) segment emerged as a key growth driver, registering the highest growth rate of 11.49% year-on-year. This performance reflects the bank's strategic focus on priority sectors and retail banking expansion.

Sequential Growth Trends

Comparing sequential quarterly performance, the bank maintained consistent growth momentum across key metrics:

Deposit Mobilization and CASA Performance

The bank's deposit base and current account savings account (CASA) metrics showed positive year-on-year trends:

The improvement in CASA ratio to 33.95% indicates enhanced deposit quality and reduced funding costs for the bank. The 53 basis points year-on-year improvement demonstrates the bank's success in attracting low-cost deposits. However, global deposits declined 0.95% quarter-on-quarter from ₹12,34,621 crores in Q2FY26.

Operational Efficiency Metrics

The bank's operational efficiency showed marked improvement with the domestic credit-to-deposit ratio (excluding bank deposits) reaching 80.94% in the December quarter. This represents a significant increase of 360 basis points year-on-year from 77.34% and 393 basis points quarter-on-quarter from 77.01%. This enhanced ratio reflects better asset utilization and improved lending efficiency.

Stock Performance and Market Response

Shares of Union Bank of India ended at ₹157.00 on January 2, gaining ₹3.42 or 2.23% on the day, reflecting positive market sentiment towards the bank's business update. The stock performance indicates investor confidence in the bank's growth trajectory and operational improvements.

Regulatory Compliance

The financial data was released in compliance with regulatory requirements, with provisional figures subject to review by Statutory Central Auditors before the formal declaration of Q3FY26 financial results.

Union Bank of India has successfully completed its scheduled annual interest payment on bonds, demonstrating continued adherence to regulatory compliance and investor commitments. The bank announced the completion of interest payment under Regulation 57 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Bond Interest Payment Details

The bank completed the annual interest payment on December 23, 2025, exactly as per the scheduled due date. The payment was processed according to investor mandates and beneficiary positions corresponding to the record date.

Regulatory Compliance

The interest payment was executed in full compliance with SEBI regulations, specifically under Regulation 57 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended. The bank confirmed that applicable Tax Deducted at Source (TDS) has been deducted from the payment amount as per regulatory requirements.

Payment Execution

The bank processed the payment without any delays or complications, maintaining its track record of timely bond servicing. The payment represents the annual interest obligation on the specified bond series, with the amount totaling ₹55.69 crores. The successful completion demonstrates the bank's commitment to honoring its debt obligations and maintaining investor confidence.

This timely payment reinforces Union Bank of India's position as a reliable issuer in the bond market, ensuring that investors receive their due returns as per the agreed terms and conditions of the bond issuance.