CASA Ratio
35.21%
+270bps vs Sep 2025
CASA improved from 32.51% in September 2025 to 35.21% in March 2026, driven by focus on low-cost deposits.
UNIONBANKOFINDIA
Financial Services
14 Apr 2026
Union Bank of India Ltd — Q4 FY26
Union Bank of India reported a strong Q4 FY26 with net profit of ₹18,697 crore and recommended a dividend of ₹5 per share.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
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.
Key Numbers
Gross NPA Ratio
2.82%
-78bps YoY
Gross NPAs reduced significantly year-on-year, reflecting improved asset quality.
Net NPA Ratio
0.48%
-15bps YoY
Net NPAs declined to 0.48%, indicating strong recovery and lower slippages.
CET1 Ratio
15.69%
+71bps YoY
Common Equity Tier 1 ratio improved from 14.98% to 15.69%, strengthening capital base.
Management Guidance
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.
Management guidance growthNIM 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.
Management guidance marginsCredit 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.
Management guidance marginsPSLC 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.
Management guidance revenueKey Risks
West Asia geopolitical disruption impact
Ongoing West Asia conflict could stress energy-sensitive sectors and remittance flows, though management sees no material impact yet.
medium · analyst_questionElevated SMA1 levels
SMA1 loans nearly doubled sequentially, indicating potential stress in the near term, though management attributed it to migration from SMA2.
medium · data_observationNIM compression from rate cuts
Further repo rate cuts could compress NIM, though management expects to defend margins through liability mix improvement.
low · management_commentaryDeposit 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.
medium · analyst_questionNotable Quotes
We are choosing growth with quality number one and with profitability.
We would like to defend our name we want to defend. We continued saying that and that is what we tried.
In good times you if you have money to you keep aside and save it. So simply we have kept aside not in profit not in capital.
Frequently Asked Questions
What was Union Bank of's revenue in Q4 FY26?
Union Bank of reported revenue of ₹1,05,900 Cr in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did Union Bank of management give for FY27?
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.
What are the key risks for Union Bank of in FY27?
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..
Did Union Bank of meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Union Bank of Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.