Union Bank of India Reports 9-10% Profit Rise in Q3 on Lower Provisions and Improved Asset Quality

Union Bank of India reported a 9-10% year-on-year rise in consolidated net profit for Q3 FY26, reaching around Rs 5,017-5,073 crore, driven mainly by a sharp decline in provisions to approximately Rs 322 crore. Net interest income grew marginally by about 1% to Rs 9,328 crore, while net interest margin narrowed to 2.76%. Asset quality improved with gross non-performing assets falling to 3.06% and slippages declining. The bank focused on profitability over growth, with moderate credit and deposit increases and a high provision coverage ratio near 95%. CEO Asheesh Pandey highlighted portfolio reshuffling and a provisioning gap under new accounting standards to be phased in from 2027.