Union Bank of India has informed the Exchange about Transcript
UNIONBANK · price
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Union Bank reported Q1 FY26 net profit of Rs. 4,116 crore, up 12% YoY, with RoA of 1.11% and RoE above 15%. Net Interest Margin moderated 11 bps to 2.76%, and management guided for further 20-25 bps NIM decline for the full year, with a possible bottom in the 260-265 bps range. Overall credit growth was 6.8% YoY, led by retail (26%) and MSME (18%) segments, while the bank strategically reduced bulk deposits by ~7%. Asset quality remained healthy with gross/net NPA ratios improving, provision cover at ~95%, credit cost at 47 bps, and slippage ratio below 1%. Treasury profit of Rs. 1,418 crore was strong but management expects it to moderate. PSLC income was nil this quarter and the bank does not expect to match last year's Rs. 950 crore from this stream. The bank has Rs. 51,000 crore in disbursement-stage sanctioned projects and Rs. 20,000 crore in pipeline.
Mixed signals for shareholders: profitability growth is solid with RoA holding above 1%, but NIM compression of 20-25 bps is a clear headwind for earnings. The bank is prioritizing margin protection over aggressive growth, and the credit growth slowdown (especially corporate) may weigh on the stock in the near term, though strong retail momentum and improving asset quality offer support.