Union Bank of IndiaRecord Profit & Historic ₹10L Cr Advances

Union Bank of India delivered its strongest quarterly performance with record net profit of ₹5,017 crores and return on assets at an all-time high of 1.35 percent for Q3 FY26.

The bank crossed a historic milestone of ₹10 lakh crores in total advances, growing 7.13 percent year-on-year, driven by robust retail segment growth of 21.67 percent and agriculture at 19.75 percent. Net interest margin stood at 2.76 percent, improving sequentially despite 125 basis points of rate cuts since December 2024, reflecting successful defense of spreads. Management executed strategic portfolio repositioning by shedding ₹38,000-40,000 crores of high-cost bulk deposits and completely exiting the ₹20,000 crore IBPC portfolio.

Asset quality remained at cyclical best with SMA-2 at the lowest level of ₹4,285 crores, 95 percent corporate book rated AAA to A, and provision coverage ratio exceeding 95 percent. Credit cost declined sharply to 26 basis points for nine months versus historical 65-75 basis points. The bank has strong visibility with ₹24,000-26,000 crores of corporate sanctions pending disbursement for Q4, positioning for sustained momentum.