UNIONBANK Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Revenue
₹26,443 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Union Bank of India delivered a strong Q3 FY26 with PAT crossing INR 5,000 crore (INR 5,017 crore), driven by disciplined balance sheet management and robust RAM segment growth. Despite 125bps of rate cuts since Dec-24, NIM contracted only 15bps to 2.76% through active liability restructuring—bulk deposits of ~INR 40,000 crore were shed while treasury book was compressed by INR 15,000 crore, with IBPC eliminated entirely. RAM growth accelerated to 11.50% YoY with retail at 21.67% and agri at 19%, while corporate book underwent quality churn with INR 30,000 crore reworked (95% rated A and above). Asset quality remained robust with GNPA/NNPA declining, SMA-2 at multi-quarter low of INR 4,285 crore, and PCR exceeding 95%. ROA of 1.35% marked the highest ever for the bank. CASA grew 140bps QoQ while standard asset provisions dropped sharply to INR 176 crore from INR 882 crore, resulting in credit cost of ~26bps for 9M FY26. Management targets better loan growth in Q4, expects NIM to improve as deposit repricing lags asset repricing, and targets credit costs in similar 20-40bps range going forward. Deposit growth of 3.36% YoY lags credit growth of 7.13%, creating LDR pressure at ~83.89%. ECL transition impact assessed at INR 4,200-4,300 crore is manageable given strong PCR and capital ratios. Risk: PSLC income of INR 108 crore in Q3 vs INR 950 crore in H1 FY25 indicates income volatility from securities gains.
Colored figures show movement against the previous available record.
Guidance to track
- Management indicated pipeline of INR 24,000-26,000 crore in corporate sanctions pending disbursement plus good pipeline in various stages; expects better than 4% QoQ loan growth in Q4
- Executive Director Amresh stated NIM will further improve because deposit repricing lags asset repricing by a few quarters; MCLR-linked book is only 32% while rest is external benchmark-linked
- 9M FY26 credit cost at 26bps; management expects similar run rate going forward given 95% PCR, low SMA-2, 95% AAA/A-rated corporate book, and strengthened recovery mechanisms
- Plan to open 75 branches in FY26 plus 200 more in subsequent years; Project Muskaan targeting 300+ process simplifications to offset operational cost increase from expansion
Risks flagged
- Deposit growth at 0.95% QoQ (3.36% YoY) significantly trails credit growth of 4% QoQ (7.13% YoY); LDR at 83.89% with domestic CD below 81%; CASA increase partially offsets but reliance on wholesale funding may increase cost
- H1 FY26 had zero PSLC income vs INR 950 crore in H1 FY25; only INR 108 crore booked in Q3; analyst questioned whether FY25 levels (~INR 950 crore half-year) can be recovered in remaining quarters
- Standard asset provisions dropped sharply to INR 176 crore from INR 882 crore QoQ; management stated no ECL provisioning done this quarter; analyst Siddharth Rajpurohit asked for excess standard asset provision quantum but management did not quantify
- Management stated ECL impact would be INR 4,200-4,300 crore net of existing provisions and offered 5-year dispensation but said bank may not need it; analyst questioned if this is transition impact or run rate—management stated run rate credit cost should be similar, but exact ECL impact pending final RBI guidelines
Key quotes
- The thing is that when you galvanize the entire machinery and you move into, even right now in the corporate only, I am saying, around INR 24,000-26,000 crore is the sanction and disbursement pending. So, I think what this is the target. So, we expect better than this in this quarter.
- Coming to the provision, certainly you need to look into three, four, five ratios or parameters. One is the SMA, one is the loan book, and one is the PCR, how much, and one is the GNPA and NNPA. I think these four, five things very clearly tell credit cost is limited.
- Regarding the NIM, what we see is that the NIM will further improve because whatever the deposit was taken, that is going to be repriced in this quarter or next financial year. And the impact, you have already seen our book that our MCLR related books are only 32% and the balance are in the shape of they are linked with the external rate of interest.
Research modules