Union Bank of India Ltd
NSE:UNIONBANK
Union Bank of India Ltd
Union Bank of India Ltd., established in 1919 in the vibrant city of Mumbai, is one of India's largest state-owned banks, intertwining its legacy with modern banking innovations. As a bridge between the old and the new, Union Bank serves a wide spectrum of clientele, ranging from individuals and small businesses to large corporations and government entities. The bank operates through an extensive network of branches, ATMs, and digital platforms, catering to the diverse needs of its customers. Union Bank earns its revenues primarily through interest income, derived from a broad suite of financial products such as loans, mortgages, and credit facilities. Additionally, it generates non-interest income through transaction fees, forex activities, and treasury operations, which include trading in securities and derivative products.
At the heart of Union Bank's operations is its commitment to leveraging technology for enhanced customer experience and operational efficiency. In recent years, the bank has been investing substantially in digital banking solutions, mobile applications, and customer-centric services to streamline operations and appeal to the tech-savvy populace. This strategic focus not only helps in reducing operational costs but also positions the bank to capture a larger market share in the digital era. Moreover, Union Bank’s integration of modern risk management tools and a robust compliance framework ensures financial stability and trust, essential for its long-term growth and profitability. As the banking landscape continues to evolve, Union Bank remains poised to harness opportunities while navigating the challenges inherent in the competitive financial market.
Union Bank of India Ltd., established in 1919 in the vibrant city of Mumbai, is one of India's largest state-owned banks, intertwining its legacy with modern banking innovations. As a bridge between the old and the new, Union Bank serves a wide spectrum of clientele, ranging from individuals and small businesses to large corporations and government entities. The bank operates through an extensive network of branches, ATMs, and digital platforms, catering to the diverse needs of its customers. Union Bank earns its revenues primarily through interest income, derived from a broad suite of financial products such as loans, mortgages, and credit facilities. Additionally, it generates non-interest income through transaction fees, forex activities, and treasury operations, which include trading in securities and derivative products.
At the heart of Union Bank's operations is its commitment to leveraging technology for enhanced customer experience and operational efficiency. In recent years, the bank has been investing substantially in digital banking solutions, mobile applications, and customer-centric services to streamline operations and appeal to the tech-savvy populace. This strategic focus not only helps in reducing operational costs but also positions the bank to capture a larger market share in the digital era. Moreover, Union Bank’s integration of modern risk management tools and a robust compliance framework ensures financial stability and trust, essential for its long-term growth and profitability. As the banking landscape continues to evolve, Union Bank remains poised to harness opportunities while navigating the challenges inherent in the competitive financial market.
Net Profit Milestone: Union Bank of India reported a record net profit of INR 5,017 crores for Q3 FY26, surpassing INR 5,000 crores in a quarter for the first time.
NIM Resilience: Net Interest Margin (NIM) stood at 2.76%, up from the previous quarter, despite a 125 basis point rate cut over the year.
Loan Growth: Gross advances rose by 7.13% year-on-year, with strong momentum in the RAM (Retail, Agri, MSME) segment, including 21.67% growth in retail and 19.75% in MSME advances.
Deposit Challenge: Total deposits grew slower at 3.36% year-on-year, with the bank highlighting strategic efforts to rebuild deposit growth, especially CASA, which increased by 140 basis points quarter-on-quarter.
Asset Quality: Both Gross NPA and Net NPA ratios declined, and Provision Coverage Ratio remains robust at over 95%. Credit cost was low at 26 basis points for 9M FY26.
Cost & Efficiency: Project Muskaan and tech investments are driving process simplification, cost optimization, and improved customer experience.
Guidance: Management expects better-than-current loan growth and aims to defend or improve NIMs, with sustainable low credit costs going forward.
