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.

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.

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.

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.