Union Bank of India announced strong financial results for the third quarter of FY26 ended December 31, 2025, demonstrating robust performance across key metrics. The bank reported a net profit of ₹5,017.00 crores for Q3FY26, with interest income reaching ₹26,443.00 crores during the quarter.
Financial Performance Highlights
The bank's financial performance showed significant improvement with net profit growing 18.07% on a quarter-on-quarter basis. Total business reached ₹22,39,740.00 crores as of December 31, 2025, representing a healthy 5.04% year-on-year growth. This growth was driven by strong momentum in both advances and deposits.
| Financial Metric |
Q3FY26 |
Q3FY25 (QoQ) |
Growth (%) |
| Net Profit |
₹5,017 cr |
₹4,249 cr |
+18.07% |
| Interest Income |
₹26,443 cr |
₹26,191 cr |
+0.97% |
| Total Business |
₹22,39,740 cr |
₹22,09,828 cr |
+1.35% |
| Net Interest Income |
₹9,328 cr |
₹8,812 cr |
+5.85% |
Business Growth and Deposit Performance
The bank achieved notable growth across its business segments. Gross advances increased by 7.13% year-on-year to ₹10,16,884.00 crores, while total deposits grew by 3.36% year-on-year. Global deposits stood at ₹12,22,856.00 crores as of December 31, 2025.
CASA (Current Account Savings Account) deposits showed strong performance with a 3.29% quarter-on-quarter growth to ₹4,15,094.00 crores. The domestic CASA ratio improved to 33.96%, up from 32.56% in the previous quarter. Current deposits grew 7.53% QoQ to ₹67,752.00 crores, while savings deposits increased 2.51% QoQ to ₹3,47,342.00 crores.
RAM Segment Excellence
The Retail, Agriculture, and MSME (RAM) segment delivered exceptional performance with 11.50% year-on-year growth. RAM advances now constitute 58.84% of domestic advances, highlighting the bank's focus on priority sectors.
| RAM Segment |
Dec 2025 |
YoY Growth (%) |
| Retail Advances |
₹2,45,541 cr |
+21.67% |
| MSME Advances |
₹1,56,203 cr |
+19.75% |
| Agriculture Advances |
₹1,75,294 cr |
-5.39% |
| Total RAM |
₹5,77,038 cr |
+11.50% |
Asset Quality Improvement
Asset quality showed remarkable improvement with gross NPA declining significantly. Gross NPA percentage reduced by 79 basis points year-on-year to 3.06% as of December 31, 2025. Net NPA percentage also improved, declining by 31 basis points year-on-year to 0.51%. The Provision Coverage Ratio remained strong at 95.13%, while credit cost reduced to 0.09% in Q3FY26.
Capital Strength and Returns
The bank maintained robust capital ratios with CRAR at 16.49% as of December 31, 2025. The CET-1 ratio improved to 13.94% from 13.59% year-on-year, demonstrating strong capital adequacy. Return metrics were impressive with ROA at 1.35% and ROE at 17.09% during Q3FY26.
Financial Inclusion and Green Initiatives
Union Bank continued its commitment to financial inclusion through various government-backed schemes. During Q3FY26, the bank enrolled 3.53 lakh new members under PMJJBY and 10.34 lakh under PMSBY. Under PMJDY, the bank maintained 3.37 crore accounts with a balance of ₹14,498.00 crores.
The bank's green financing initiatives showed strong progress with ₹34,967.00 crores sanctioned for renewable energy sector and ₹1,637.00 crores under Union Green Miles as of December 31, 2025. The Union Nari Shakti Scheme for women entrepreneurs sanctioned 3,576 applications worth ₹611.00 crores during the quarter.
Network Expansion
Union Bank operates an extensive network comprising 8,671 branches including foreign branches, 8,300 ATMs, and 26,541 BC points. The specialized lending network includes 138 MSME loan points, 143 retail loan points, 75 agriculture loan points, and 1,675 gold loan points, ensuring comprehensive coverage across customer segments.
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