Union Bank Q1 profit jumps 30% to ₹5,332 cr; asset quality improves
Net profit rises 29.6% YoY driven by 12.5% loan growth. Gross NPA ratio drops to 2.65%, net NPA to 0.47%.
— 6 earlier stories on Union Bank Of India →What's new
- Net profit of ₹5,332 cr, up 29.6% YoY.
- Gross advances grew 12.5%; RAM segment now 57.3% of domestic loans.
- GNPA ratio fell to 2.65% from 3.52% a year ago; net NPA at 0.47%.
Why this matters
Union Bank delivered a strong quarter with profit of ₹5,332 crore, improving asset quality, and wider margins. Yet the press release adds nothing new – all key numbers were already disclosed in the board outcome on July 15. This is routine documentation, not a surprise.
What we're watching
- Whether loan growth can sustain given the credit-to-deposit ratio was 83.4% in Q1 (as per prior coverage).
- Cost of deposits trajectory as competition for deposits heats up.
- Any further improvement in GNPA below 2.5%.
The full read
Union Bank delivered a 29.6% jump in net profit to ₹5,332 crore for the June quarter, following a ₹5,504 crore profit in the previous quarter. Loan growth of 12.5% was driven by the RAM segment, which now accounts for 57.3% of domestic advances. Asset quality continued to improve: gross NPAs fell to 2.65% from 3.52% a year ago, while net NPAs eased to 0.47%. Net interest margin widened to 2.80% as cost of deposits declined to 5.05%. Capital buffers remain strong with a CAR of 18.46%. None of these numbers is new; they were all in the board outcome on July 15. The press release is routine documentation, not a surprise.
Questions answered
- How does this quarter compare to the previous quarter?
- Net profit of ₹5,332 crore is slightly lower than the ₹5,504 crore reported in the March 2026 quarter.
- What drove the profit growth?
- 12.5% growth in gross advances and a widening net interest margin to 2.80%, aided by a lower cost of deposits at 5.05%.
- How is asset quality trending?
- GNPA ratio improved to 2.65% from 3.52% a year ago; net NPAs at 0.47% versus 0.85% earlier.
- Why is this filing considered routine?
- All key numbers were already disclosed in the board meeting outcome on July 15; this press release only provides additional segment details.
- What is the bank's capital position?
- Capital adequacy ratio stood at 18.46% with CET1 at 16.38%, well above regulatory requirements.
Union Bank Of India
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All notes on UNIONBANK →- 15 Jul 2026 · 12:50 PM IST Union Bank Q1 profit jumps 30% to ₹5,332 cr; asset quality improves
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