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Union Bank of India

| Audited Standalone Results for Quarter & Year Ended March 31, 2026

Report Source

⬤23rd Apr 26

Summary : Union Bank of India reports strong FY26 financial results with improved asset quality, robust capital, and a recommended dividend, despite negative operating cash flow.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Interest Expended FY26: ₹69,33,340 Lakhs.
  2. Standalone Operating Expenses FY26: ₹27,47,412 Lakhs (Employees Cost ₹15,29,042 Lakhs, Other operating expenses ₹12,18,370 Lakhs).
  3. Consolidated Interest Expended FY26: ₹69,47,733 Lakhs.
  4. Consolidated Operating Expenses FY26: ₹30,20,573 Lakhs (Employees Cost ₹15,68,731 Lakhs, Other operating expenses ₹14,51,842 Lakhs).
  5. Standalone Total Income FY26: ₹1,25,42,702 Lakhs.
  6. Consolidated Total Income FY26: ₹1,28,39,951 Lakhs.
  7. Segment Revenue (Standalone FY26): Treasury Operations ₹30,10,749 Lakhs, Retail Banking Operations ₹47,57,399 Lakhs, Corporate/Wholesale Banking Operations ₹44,37,858 Lakhs.
  8. Standalone Net Cash Flow from Operating Activities FY26: (₹39,42,644) Lakhs (negative).
  9. Consolidated Net Cash Flow from Operating Activities FY26: (₹35,79,835) Lakhs (negative).
  10. Standalone Net Cash Flow from Investing Activities FY26: (₹2,97,635) Lakhs (negative).
  11. Consolidated Net Cash Flow from Investing Activities FY26: (₹7,07,525) Lakhs (negative).
  12. Standalone Net Cash Flow from Financing Activities FY26: ₹7,26,922 Lakhs (positive).
  13. Consolidated Net Cash Flow from Financing Activities FY26: ₹7,72,892 Lakhs (positive).
  14. Standalone Net Decrease in Cash & Cash Equivalent FY26: (₹35,13,357) Lakhs.
  15. Consolidated Net Decrease in Cash & Cash Equivalent FY26: (₹35,14,468) Lakhs.
  16. Standalone Net Worth FY26: ₹1,17,87,107 Lakhs.
  17. Consolidated Net Worth FY26: ₹1,22,41,065 Lakhs.
  18. Standalone Advances FY26: ₹10,53,27,749 Lakhs.
  19. Consolidated Advances FY26: ₹10,57,18,752 Lakhs.
  20. Standalone Deposits FY26: ₹13,06,89,141 Lakhs.
  21. Consolidated Deposits FY26: ₹13,09,75,869 Lakhs.
  22. Standalone Gross NPAs FY26: 2.82% (down from 3.60% in FY25).
  23. Standalone Net NPAs FY26: 0.48% (down from 0.63% in FY25).
  24. Consolidated Gross NPAs FY26: 2.82% (down from 3.60% in FY25).
  25. Consolidated Net NPAs FY26: 0.48% (down from 0.63% in FY25).
  26. Standalone Capital Adequacy Ratio (Basel III) FY26: 18.10%.
  27. Consolidated Capital Adequacy Ratio (Basel III) FY26: 18.78%.
  28. Both Standalone and Consolidated financial results are presented.
  29. Consolidated figures generally reflect higher totals due to the inclusion of subsidiaries and joint ventures.

Corporate Overview

  1. Domestic operations across India (Head Office, numerous branches).
  2. International presence through Union Bank of India (UK) Ltd. (subsidiary).
  3. Dubai branch operations (reclassification of deposits).
  4. Former joint venture in Malaysia (India International Bank Malaysia Berhad) now in liquidation.
  5. Management of stressed assets and non-performing assets.
  6. Liquidation of India International Bank Malaysia Berhad joint venture.
  7. Regulatory penalties imposed by FIU-IND, MoF, and RBI.
  8. Estimation of liability for unhedged foreign currency exposure.
  9. Adherence to Reserve Bank of India (RBI) guidelines and circulars.
  10. Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations.
  11. Banking operations across Treasury, Retail, Corporate/Wholesale, and Other Banking segments.
  12. Digital Banking is a sub-segment within Retail Banking operations.
  13. Formal and compliant, focusing on reporting financial performance and regulatory adherence.
  14. No explicit forward-looking statements or subjective language.
  15. Retail customers (including digital banking users).
  16. Corporate and wholesale clients.
  17. MSME borrowers.
  18. Treasury Operations
  19. Retail Banking Operations (Digital and Non-Digital)
  20. Corporate/Wholesale Banking Operations
  21. Other Banking Operations
  22. Extensive branch network including Head Office, 20 domestic branches, 1 treasury branch audited by statutory auditors.
  23. 2298 domestic branches and offices audited by respective statutory branch auditors.
  24. 2 foreign branches audited by local auditors.
  25. 6904 domestic branches and offices with unaudited financial information.
  26. Raised ₹3,000 crore through Infra Bonds.
  27. Exercised call option for redemption of ₹2,705 crore Basel III compliant bonds.
  28. Ongoing projects under implementation, with details on sanctioned and completed projects.

Risk Factors

  1. Negative cash flow from operations.
  2. Joint venture undergoing liquidation.
  3. Regulatory penalties imposed on bank.
  4. Auditors rely on unaudited branch data.

Key Drivers

  1. Improved asset quality, lower NPAs.
  2. Strong capital adequacy ratio maintained.
  3. Recommended dividend for shareholders.
  4. Growth in total income and net profit.

Auditor’s Report

  1. Unmodified opinion on Standalone Financial Results.
  2. Unmodified opinion on Consolidated Financial Results.
  3. Standalone: Disclosures relating to Pillar 3 under Basel III capital regulations on the Bank's website were not audited.
  4. Standalone: Reliance on unaudited returns from 6904 domestic branches, accounting for significant portions of advances, deposits, NPAs, and interest income/expenses.
  5. Consolidated: Disclosures relating to Pillar 3 under Basel III capital regulations on the Bank's website were not audited.
  6. Consolidated: Reliance on audited financial results of 3 subsidiaries and 1 joint venture, and unaudited financial results of 2 subsidiaries, 2 joint ventures, and 1 associate, certified by management or other auditors.

Board Commentary

  1. Board recommended a dividend of ₹5 per Equity Share of ₹10 each for Financial Year 2025-26 (50%).
  2. Payment of dividend is subject to statutory approvals and shareholder approval at the 24th Annual General Meeting.
  3. Stressed assets (e.g., MSME borrower accounts restructured, loans impacted by RBI circular).
  4. Unhedged foreign currency exposure to constituents.
  5. Fraud cases reported and fully provided.
  6. Penalty of ₹1.96 crore imposed on the bank by FIU-IND, MoF, and RBI.
  7. Compliance with various RBI circulars regarding asset classification, provisioning, and capital regulations.
  8. Raised ₹3,000 crore of Infra Bonds.
  9. Exercised call option for redemption of ₹2,705 crore Basel III compliant bonds (Tier-I and Tier-II).
  10. Details of project finance resolution plans implemented, including projects under implementation and sanctioned during the quarter.

Corporate Governance

  1. Auditors confirm adherence to the Code of Ethics issued by ICAI.
  2. Auditors confirm compliance with ethical requirements and Code of Ethics.
  3. Audit Committee of the Board reviewed and recommended the financial results.

Management Discussion & Analysis

Future Strategy

  1. Continued focus on regulatory compliance and risk management.
  2. Resolution of stressed assets as per RBI guidelines.
  3. Strategic management of capital through bond issuance and redemption.

Industry Overview

  1. Not explicitly discussed in the provided document.

Macroeconomic Outlook

  1. Not explicitly discussed in the provided document.

Operational Focus Areas

  1. Compliance with RBI and SEBI regulations.
  2. Proactive provisioning for standard assets and non-performing assets.
  3. Managing unhedged foreign currency exposure.
  4. Addressing fraud cases with full provision.

Performance Drivers

  1. Growth in interest earned and other income.
  2. Effective management of interest expended and operating expenses.
  3. Improvement in asset quality with reduced Gross and Net NPA ratios.
  4. Strong capital adequacy ratios (CET 1 and Additional Tier 1).

Risk Control Measures

  1. Provisions for non-performing assets and stressed assets.
  2. Provisions for unhedged foreign currency exposure.
  3. Full provision for reported fraud cases.
  4. Adherence to RBI circulars for resolution of stressed assets.

Critical Risks

  1. Non-performing assets and stressed assets.
  2. Unhedged foreign currency exposure.
  3. Fraud cases.
  4. Regulatory penalties and compliance risks.