Union Bank of India logs 12% rise in net to ₹4,116 crore in Q1

State-owned Union Bank of India on Saturday (July 19, 2025) reported a 12% rise in net profit to ₹4,116 crore during the first quarter of this financial year.

The Mumbai-based lender had earned a net profit of ₹3,679 crore in the same quarter of the previous fiscal year.

The total income rose to ₹31,791 crore during the June 2025 quarter from ₹30,874 crore in the year-ago period, Union Bank of India said in a regulatory filing.

Interest earned by the bank improved to ₹27,296 crore compared to ₹26,364 crore in the June quarter of FY25.

However, net interest income declined to ₹9,113 crore during the quarter against ₹9,412 crore a year ago.

The bank's operating profit also dropped 11% to ₹6,909 crore from ₹7,785 crore in the same quarter of the preceding fiscal.

The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 3.52% of gross advances at the end of the June quarter from 4.54% a year ago.

Its gross advance increased by 6.83% to ₹9,74,489 crore from ₹9,12,214 crore at the end of June 2024.

Similarly, its net NPAs, or bad loans, declined to 0.62% against 0.90% in the year-ago period.

As a result, provisions for bad loans declined to ₹1,153 crore during the first quarter compared to ₹1,651 crore a year ago.

Provision Coverage Ratio (PCR) improved to 94.65% from 93.49%, an improvement of 116 bps.

At the same time, Return on Assets (ROA) rose to 1.11% for June 2025, from 1.06% in June 2024, registering an improvement of 5 bps, the lender said.

Capital adequacy ratio of the bank rose to 18.3% from 17.02% in the same quarter of FY25.

The total business grew by 5% to ₹22,14,422 crore from ₹21,08,762 crore at the end of June 2024.