**Union Bank of India Reports 12% Increase in Q1 Net Profit**
State-owned Union Bank of India has announced a 12% increase in its net profit for the first quarter of the current financial year, reaching ₹4,116 crore. This marks a significant rise from the ₹3,679 crore net profit recorded in the same quarter of the previous fiscal year. The bank’s total income also saw an uptick, climbing to ₹31,791 crore in the June 2025 quarter, compared to ₹30,874 crore during the same period last year.
The bank’s interest earnings improved to ₹27,296 crore, up from ₹26,364 crore in the June quarter of FY25. However, net interest income experienced a decline, falling to ₹9,113 crore from ₹9,412 crore a year earlier. Additionally, the operating profit decreased by 11% to ₹6,909 crore, down from ₹7,785 crore in the corresponding quarter of the previous fiscal year.
In terms of asset quality, Union Bank of India reported improvements, with gross non-performing assets (NPAs) decreasing to 3.52% of gross advances at the end of the June quarter, down from 4.54% a year ago. The bank’s gross advances rose by 6.83% to ₹9,74,489 crore, compared to ₹9,12,214 crore at the end of June 2024. Net NPAs also saw a reduction, declining to 0.62% from 0.90% in the previous year.
As a result of these developments, provisions for bad loans decreased to ₹1,153 crore in the first quarter, down from ₹1,651 crore a year earlier. The Provision Coverage Ratio (PCR) improved to 94.65%, an increase of 116 basis points from 93.49%. Furthermore, the Return on Assets (ROA) rose to 1.11% for June 2025, up from 1.06% in June 2024, reflecting a 5 basis point improvement.
The bank’s capital adequacy ratio also strengthened, rising to 18.3% from 17.02% in the same quarter of FY25. Overall, the total business of Union Bank of India grew by 5% to ₹22,14,422 crore, compared to ₹21,08,762 crore at the end of June 2024.
In summary, Union Bank of India has demonstrated solid financial performance in the first quarter, with notable improvements in net profit, asset quality, and capital adequacy, positioning itself for continued growth in the upcoming quarters.
**FAQ**
**What factors contributed to Union Bank of India’s profit increase?**
Union Bank of India’s profit increase can be attributed to higher total income, improved interest earnings, and a reduction in gross non-performing assets, which enhanced overall asset quality.
