Bank of India vs Union Bank of Q4 FY26

BA

Bank of India

Q4 FY26 · Financial Services

Bank of India reported a strong Q4 FY26 with net profit of ₹10,527 crore (up 14% YoY) driven by robust business growth and improved asset quality. Global business grew 14.6% to ₹16.98 lakh crore, with deposits up 13.6% and advances up 15.8%. Asset quality improved significantly: GNPA ratio fell 129 bps to 1.98% and NNPA to 0.56%. Management guided for 15-16% credit growth and 13-14% deposit growth in FY27, targeting domestic NIM of ~3% and ROA of 1%. Key risks include geopolitical headwinds impacting MSMEs and potential credit cost increase from ECL implementation (estimated 10 bps annual impact).

Guidance read

Credit growth guidance of 15-16% for FY27: Global advances expected to grow 15-16% in FY27, driven by RAM and mid-corporate segments. Deposit growth guidance of 13-14% for FY27: Global deposits targeted to grow 13-14% in FY27, with focus on CASA and retail term deposits. Domestic NIM target of ~3% by March 2027: Management aims to improve domestic NIM from 2.78% to near 3% by end of FY27 through better yield and lower cost of deposits. ROA target of 1% for FY27: Bank expects to achieve ROA of 1% for the full year FY27, up from 0.93% in FY26.

Risk read

Key risks include Geopolitical headwinds impacting credit quality — Rising crude prices, supply chain disruptions, and interest rate hikes may stress MSME and export-oriented sectors.; ECL implementation impact on credit cost — Transition to ECL guidelines from April 2027 may increase credit cost by ~10 bps annually, though management expects smooth transition.; CASA ratio decline and deposit cost pressure — CASA ratio fell to 37.64% from ~40% due to structural shift, potentially increasing cost of deposits if not reversed.; State PSU slippage risk — Three state PSUs in SMA category may slip into NPA if cash flows don't improve, though management is confident of recovery..

Promise ledger

Scorecard data is being built as historical quarters are processed.

UN

Union Bank of

Q4 FY26 · Financial Services

Union Bank of India reported a strong Q4 FY26 with net profit of ₹18,697 crore and recommended a dividend of ₹5 per share. The bank achieved robust business growth, with gross advances up 9.74% YoY and a significant improvement in CASA ratio to 35.21% from 32.51% in September. Management highlighted a strategic shift from bulk deposits to retail term deposits and CASA, reducing bulk deposits by ₹70,000 crore. The bank also created a ₹700 crore contingency provision without impacting profit or capital. NIM compressed to 2.64% due to the December rate cut but management expects stabilization and gradual improvement. Credit cost was low at 23 bps for the year, with guidance of ~1% for FY27. Key risks include potential stress from West Asia disruptions and elevated SMA1 levels, though management sees no material impact yet. The bank targets 13-14% credit growth in FY27 while maintaining asset quality and profitability.

Guidance read

Credit growth target of 13-14% for FY27: Management expects to achieve 13-14% credit growth in FY27, in line with industry trends and better than the 9.74% YoY growth in FY26. NIM to stabilize and improve from 2.64%: Management expects NIM to defend current levels and gradually improve, driven by CASA expansion and better asset-liability management. Credit cost guidance of ~1% for FY27: Management guided credit cost around 1% for FY27, up from 23 bps in FY26, reflecting normalization and prudent provisioning. PSLC fee income to potentially reach ₹1,000 crore: Management indicated that PSLC fee income could return to ₹1,000 crore plus levels in FY27, similar to FY25, after a lower contribution in FY26.

Risk read

Key risks include West Asia geopolitical disruption impact — Ongoing West Asia conflict could stress energy-sensitive sectors and remittance flows, though management sees no material impact yet.; Elevated SMA1 levels — SMA1 loans nearly doubled sequentially, indicating potential stress in the near term, though management attributed it to migration from SMA2.; NIM compression from rate cuts — Further repo rate cuts could compress NIM, though management expects to defend margins through liability mix improvement.; Deposit growth lagging credit growth — Total deposit growth of 2.72% YoY trailed credit growth of 9.74%, potentially constraining future loan growth if not addressed..

Promise ledger

Scorecard data is being built as historical quarters are processed.