Union Bank Q4 profit up 9.8 pc to Rs 5 503 cr aims to match industry credit growth in FY27

    Mumbai, Apr 23 (PTI) State-owned Union Bank of India on Thursday reported a 9.83 per cent rise in March quarter's consolidated profit after tax (PAT) at Rs 5,503.61 crore on lower provision and improved asset quality.
     The city-headquartered bank posted a 6.6 per cent year-on-year rise in the standalone profit at Rs 5,316 crore for the quarter.
     Its core net interest income (NII) declined 1.14 per cent on-year to Rs 9,406 crore during the quarter on the back of narrowing of net interest margin to 2.64 per cent from 2.87 per cent, and a 9.74 per cent growth in advances.
     Managing director and chief executive Asheesh Pandey said the bank's credit growth is slower than the industry's 15.6 per cent for fiscal 2025-26, and it aims to match that or take a notch above in FY27.
     Pandey said the bank has a corporate loan book pipeline of Rs 55,000 crore in the current financial year, and Rs 30,000 crore of sanctions.
     Non-interest income of the bank also reduced by 2.64 per cent in Q4 to Rs 5,412 crore, as treasury income slumped. However, on sequential basis, it rose by 19.18 per cent, supported by a spike in recoveries in written-off accounts.
     Provisions declined during the quarter, leading to a moderation in credit cost, as improved asset quality and lower slippages reduced the need for banks to set aside funds for potential loan losses.
     In the March quarter, provision declined by 2.76 per cent year-on-year to Rs 2,640 crore, from Rs 2,715 crore a year ago. Similarly, credit cost declined to 0.16 per cent from 0.69 per cent, according to the investor presentation.
     Asset quality of the bank saw an improvement with gross non-performing asset (NPA) ratio declining to 2.82 per cent as on March 31, 2026, from 3.06 per cent on December 31, 2025, and 3.60 per cent a year ago.
     Fresh slippages of the bank reduced in Q4FY26 to Rs 2,023 crore from Rs 2,483 crore in the year-ago period. The major slippages during the quarter came from MSME loans worth Rs 895 crore, followed by agriculture loans of Rs 742 crore.
     Also, the board recommended a dividend of Rs 5 per equity share of Rs 10 each for financial year 2025-26. The payment is subject to shareholders' approval.
     On Thursday, shares of Union Bank of India ended 7.40 per cent down at Rs 179.65 apiece on the BSE.

(This story has not been edited by THE WEEK and is auto-generated from PTI)