On July 9, 2025, Union Bank shares fell as much as 5%, reaching a day low of 141.85 at 11:15 AM, after opening at 148.00 on BSE. The fall in Union Bank shares follows the release of Q1FY26 business update
As of June 30, 2025, the bank reported a 5.01% year-on-year (YoY) growth in total global business, reaching ₹22.14 lakh crore. However, on a quarter-on-quarter (QoQ) basis, this marked a decline of 1.80%. Global deposits rose 3.63% YoY to ₹12.39 lakh crore but slipped 2.54% QoQ. Domestic deposits followed a similar trend, increasing 3.62% YoY but falling 2.54% QoQ, while CASA deposits inched up just 0.92% YoY and dropped 5.43% QoQ.
On the advances front, the bank’s global gross advances rose 6.83% YoY, despite a marginal 0.85% QoQ dip. Domestic advances were up 6.75% YoY, with a slight 0.83% QoQ decline. The RAM segment (Retail, Agriculture, and MSME) posted a strong 10.31% YoY increase and a 2.50% QoQ gain. Leading the growth, domestic retail advances surged 25.60% YoY and 5.63% QoQ, highlighting robust demand in the retail lending space.
For the financial year ended FY25, the bank reported its highest-ever annual net profit, amounting to ₹17,987 crores, reflecting a robust year-on-year (YoY) growth of 32%. In the fourth quarter (Q4 FY25), net profit stood at ₹4,985 crores, registering a strong YoY increase of 51%.
The bank’s operating profit for Q4 FY25 was recorded at ₹7,700 crores, reflecting a YoY growth of 18%, while the full-year operating profit reached ₹31,090 crores, marking a 10% increase over the previous fiscal.
Profitability ratios saw notable improvement. Return on Assets (RoA) improved to 1.35% in Q4 FY25, up from 0.97% in Q4 FY24, and higher than the 1.3% recorded in Q3 FY25. Return on Equity (RoE) rose to 19.07%, compared to 15.12% in the same quarter last year.
The bank maintained a strong capital position, with a Capital Adequacy Ratio (CAR) of 18.02% and a CET1 ratio of 14.98%, both well above the regulatory minimum, providing ample buffer for future expansion.
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On the asset quality front, continued efforts to enhance underwriting practices—through centralisation, verticalization, and digitisation—resulted in sustained improvements. Gross Non-Performing Assets (GNPA) declined by 116 basis points YoY to 3.6%, aligning with the bank’s earlier guidance of bringing it below 4%. Net NPA fell by 40 basis points YoY to 0.63%. The Provision Coverage Ratio (PCR) stood at a healthy 94.61%, reflecting a well-provisioned and resilient balance sheet.
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Published on: Jul 9, 2025, 11:41 AM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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