**Union Bank Reports Strong Q1 Results with 12% Profit Growth**
Union Bank of India has announced its financial results for the first quarter (Q1) ending June 30, 2025, showcasing a robust performance. The public sector lender reported a net profit of ₹4,115.5 crore, reflecting a 12% increase compared to ₹3,679 crore in the same quarter last year. The bank’s total income also saw an uptick, rising to ₹31,791 crore from ₹30,874 crore year-on-year.
In terms of overall business growth, Union Bank’s total business expanded by 5%, reaching ₹22,14,422 crore, up from ₹21,08,762 crore at the end of June 2024. However, the bank’s net interest income (NII) experienced a decline of 3.2%, amounting to ₹9,112.6 crore in Q1 of FY26, down from ₹9,412 crore in the corresponding quarter of the previous fiscal year.
Provisions and contingencies for the June quarter increased to ₹1,664.5 crore, compared to ₹1,543.9 crore in the previous quarter. Notably, provisions for non-performing assets (NPAs) decreased to ₹1,152 crore from ₹1,675.7 crore in the January-March period.
Union Bank’s shares closed at ₹146.5 on Friday, showing a 20% increase year-to-date. In a strategic move to support borrowers, the state-owned bank recently reduced its lending rates by 50 basis points, aligning with the Reserve Bank of India’s (RBI) rate moderation. This adjustment includes a downward revision of the external benchmark lending rate (EBLR) and the repo-linked lending rate (RLLR), benefiting both new and existing retail and MSME borrowers.
The RBI’s recent decision to cut interest rates by 50 basis points and lower the cash reserve ratio (CRR) aims to enhance liquidity in the banking system and stimulate economic growth. The six-member monetary policy committee, led by Governor Sanjay Malhotra, voted five to one in favor of this rate reduction, bringing the benchmark repo rate down to 5.5%.
In summary, Union Bank of India’s Q1 results reflect a solid financial performance, with significant profit growth and strategic adjustments to lending rates, positioning the bank favorably in the current economic landscape.
**FAQ**
**What were Union Bank’s net profit and total income for Q1 FY26?**
Union Bank reported a net profit of ₹4,115.5 crore and total income of ₹31,791 crore for the first quarter of FY26.