Union Bank of India profit rises 12% despite margin pressure

Union Bank of India reported net profit of INR 4,116 crores for Q1 FY26, up 12% year-over-year, with return on assets at 1.11% and return on equity above 15%.

Credit grew 6.8% overall, driven by 10.3% growth in retail, agriculture and MSME segments. Retail loans surged 26% while MSME lending rose 18%.

Net interest margin fell 11 basis points to 2.76% due to competitive rates and rate cuts passed to borrowers. Both gross and net NPA ratios improved marginally, with provision coverage reaching nearly 95%.