Mumbai: Despite a marginal sequential dip in operating profit, Union Bank of India posted resilient financials for Q3 FY26, with steady growth in bottom-line performance driven by reduced provisioning and stable asset quality.
Net profit scales up
Union Bank’s Q3 FY26 standalone net profit stood at ₹5,017 crore, up from ₹4,575 crore in Q3 FY25, driven largely by a drop in provisioning which fell to ₹2,321 crore versus ₹3,239 crore a year ago. Sequentially, profit was up from ₹4,250 crore in Q2, despite marginally lower interest income and operating profit.
Margins hold, costs controlled
Net interest income (NII) remained stable at ₹8,709 crore in Q3, compared to ₹8,725 crore in Q2. Operating expenses were contained at ₹7,672 crore, with employee costs holding at ₹4,002 crore. Operating profit stood at ₹6,959 crore, slightly lower than ₹6,845 crore in Q2 but higher than ₹6,210 crore in Q1.
Provisions ease, asset quality improves
Provisions declined sharply from ₹3,339 crore in Q1 to ₹2,321 crore in Q3. Gross NPA ratio fell to 4.81% from 5.15% in Q2, while net NPAs improved to 1.02% from 1.16%. The provision coverage ratio stood strong at 95.13%, reflecting improved credit risk buffers.
9-month performance solid
For the nine-month period, Union Bank reported a 21.4% jump in net profit to ₹13,928 crore compared to ₹11,463 crore in the same period last year. Return on assets rose to 1.02% for 9M FY26 from 0.91% in FY25, while capital adequacy remained healthy at 17.14%. Union Bank’s Q3 performance underscores its ability to maintain profitability momentum, setting up a strong base for FY26 close.
