Union Bank of India has informed the Exchange about Transcript
UNIONBANK · price
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Union Bank of India reported a net profit of ₹18,697 crores for FY26 with Q4 profit exceeding ₹5,300 crores. The bank achieved 9.74% Y-o-Y growth in gross advances and 2.72% deposit growth (or ~9% when including ₹46,000 crores of alternative funding). Asset quality improved significantly with gross NPA reduced by 78 bps to 2.82% and net NPA at 0.48%. The board recommended a dividend of ₹5 per share (50% payout). CASA ratio improved from 32.51% to 35.21%, while the bank shed bulk deposits worth ~₹70,000 crores by shifting to retail deposits. CRAR stands at 18.10% with CET1 at 15.69%. Management maintained an additional prudent provision of ₹700 crores separately without impacting profit or capital. The bank also settled the Sterling Biotech account during Q4, booking recovery income of ₹658 crores.
The bank's strong profitability, improving asset quality, and strategic shift toward CASA and retail deposits indicate a healthier balance sheet. However, NIM compression from 2.91% to 2.64% remains a concern. Management's 13-14% credit growth target for FY27 with focus on quality suggests continued expansion but with caution on margins.