Union Bank of India has informed the Exchange about Transcript
UNIONBANK · price
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Union Bank of India shared the transcript of its post-earnings call held on May 9, 2025, for the quarter and year ended March 31, 2025. The bank reported its highest-ever annual net profit of ₹17,987 crore, up 32% year-on-year, while Q4 net profit jumped 51% YoY to ₹4,985 crore. Asset quality improved sharply, with Gross NPA falling 116 bps to 3.6% and Net NPA at 0.63%. Return on Assets improved to 1.35% and RoE to 19.07%, while Capital Adequacy stood strong at 18.02%. Business growth, however, came in below guidance — deposits grew 7.2% and advances 8.6% — as the bank deliberately avoided low-yielding corporate loans and high-cost bulk deposits. Net Interest Margin for FY25 was 2.91%, and management warned that the recent RBI rate cut will pressure margins in the near term. The Board has recommended a 47.5% dividend, and the bank will sponsor the newly amalgamated Andhra Pradesh Grameena Bank from May 1, 2025.
Strong profitability and improving asset quality are positive for shareholders, supported by a healthy 47.5% dividend. However, management's refusal to give FY26 guidance and a clear warning on NIM pressure from rate cuts may keep the stock range-bound in the near term. Investors should watch for margin trajectory and credit growth revival in coming quarters.