Union Bank of India Reports Steady Financial Performance for Quarter Ending September 2025

Union Bank of India has reported a steady financial performance for the quarter ending September 2025. The bank's total interest income was Rs 26,650 crore, which is a 2.36% decrease from the previous quarter but a 1.64% increase compared to the same period last year, rising from Rs 53,073 crore in September 2024 to Rs 53,946 crore.

Non-interest income saw an 11.37% quarterly increase to Rs 4,996 crore. However, it experienced a 3.62% decline year-on-year, falling from Rs 9,837 crore in Q2FY25 to Rs 9,482 crore in Q2FY26. Interest expenditure was recorded at Rs 17,838 crore, showing a quarterly decrease of 1.90% but a yearly increase of 4.07%.

Operating expenses rose by 4.55% from the previous quarter, reaching Rs 6,994 crore. This reflects the bank's business expansion efforts. Net interest income (NII) fell by 3.29% quarter-on-quarter to Rs 8,812 crore and decreased by 2.90% year-on-year to Rs 17,925 crore from Rs 18,459 crore in Q2FY25.

The bank's operating profit slightly decreased by 1.37%, amounting to Rs 6,814 crore. Despite this, net profit improved by 3.25% quarter-on-quarter to Rs 4,249 crore and remained nearly stable year-on-year at Rs 8,365 crore.

The cost of deposits saw a slight reduction to 5.48%, while the Net Interest Margin (NIM) decreased to 2.67% from the previous quarter's 2.76%. The cost-to-income ratio increased to 50.65%, indicating higher operating expenses. The yield on advances stood at 8.34%.

Return on Equity (RoE) was recorded at 15.08%, and Return on Assets (RoA) showed a slight increase to 1.16%. Asset quality improved with Gross NPA reducing to 3.29% and Net NPA at 0.55%. Credit cost dropped to 0.22%, and the Provision Coverage Ratio (PCR) remained robust at 95.13%, reflecting effective credit management.

Business Growth and Deposits

The bank's total business amounted to Rs 22,09,828 crore, showing a marginal decline of 0.21% from June 2025 but a year-on-year increase of 3.24% from Rs 21,40,435 crore. Savings deposits increased by 1.31% to Rs 3,38,844 crore, while current deposits fell by 8.11% quarter-on-quarter to Rs 63,010 crore.

The domestic CASA ratio was slightly down by 16 basis points year-on-year at 32.56%, with the CASA balance stable at Rs 4,01,854 crore.

Advances and Credit-Deposit Ratio

The Credit-Deposit (CD) ratio improved by 287 basis points year-on-year to reach 79.67%, up from June's figure of 79.17%. Retail advances saw significant growth of 4.13% quarter-on-quarter and an impressive rise of 23.98% year-on-year to reach Rs 2,38,506 crore.

MSME advances increased by 2.75% quarter-on-quarter and grew by a notable 14.88% year-on-year to Rs 1,47,395 crore. However, agriculture advances declined by both measures: down by 1.55% quarter-on-quarter and decreasing by a substantial margin of 12.15% year-on-year to Rs 1,68,405 crore.

Gross advances reached Rs 9,75,207 crore with a modest quarterly rise of just over zero percent but showed a healthy annual growth of nearly five percent over the previous year’s figures.