UNIONBANKNSEUnion Bank of India· BanksMediumNeutral
Announced Thu, 23 Apr · 13:15 IST

Union Bank of India has informed the Exchange about Investor Presentation

Mgmt Guided Margin PressureInvestor Communications View source PDF

UNIONBANK · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve 14 horizons · vs prior close
-9.1%1-day move
₹194.30
prior close
₹183.57
base price
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AI summary

Union Bank of India reported strong Q4 FY26 results with net profit up 6.64% year-on-year to ₹5,316 crore, driven by improved asset quality. The bank achieved significant reduction in gross non-performing assets, with GNPA declining to 2.82% from 3.60% a year ago, and net NPA falling to 0.48%. Credit cost dropped sharply to 0.16% from 0.69%, indicating better loan performance. However, net interest margin compressed to 2.64% from 2.87% in Q4 FY25, reflecting margin pressure from competitive lending rates and higher funding costs. For the full year, the bank posted net profit of ₹18,697 crore, up 3.95%, while NIM for FY26 stood at 2.70% versus 2.91% in FY25. Global advances grew 9.74% year-on-year to ₹10.79 lakh crore, with retail, agriculture, and MSME segments showing robust 12.56% growth. The bank maintained healthy capital adequacy with CRAR at 18.10% and CET-I at 15.69%.

Likely market impact

The bank delivered strong profitability growth with substantial improvement in asset quality, which is positive for shareholders. However, the continued NIM compression raises concerns about sustainable earnings growth in a competitive banking environment, and investors should monitor whether the bank can maintain margins while pursuing credit growth.