Union Bank of India reported a strong financial performance for the third quarter of FY25, with its net profit surging by 28.24% year-on-year (YoY) to ₹3,590 crore compared to ₹2,799 crore in Q3 FY24. The robust growth was driven by higher net interest income (NII) and improved asset quality.
The bank’s NII stood at ₹9,240 crore for Q3 FY25, reflecting a marginal growth of 0.79% from ₹9,168 crore in the same period last year. Non-interest income also witnessed significant growth, rising by 17.02% YoY to ₹4,417 crore, up from ₹3,774 crore in Q3 FY24.
Asset Quality Improvements
Union Bank continued its efforts to enhance asset quality. Gross Non-Performing Assets (GNPA) decreased to ₹36,554 crore in Q3 FY25 from ₹43,262 crore in Q3 FY24, marking a decline of 15.51%. Similarly, Net NPA dropped by 19.07% YoY to ₹7,568 crore from ₹9,351 crore in the previous year. GNPA as a percentage of total advances improved to 3.85%, while Net NPA stood at 0.82%, reflecting a significant improvement in the bank’s credit quality.
Operational Highlights
- The bank’s global advances grew by 5.94% YoY to ₹9,49,164 crore, while deposits increased by 3.76% to ₹12,16,562 crore.
- Operating profit rose by 2.94% YoY to ₹7,492 crore, compared to ₹7,278 crore in Q3 FY24.
- Return on Assets (ROA) improved by 23 basis points (bps) YoY to 1.30%, while Return on Equity (ROE) increased by 50 bps to 17.75%.
Capital Adequacy
Union Bank’s Capital Adequacy Ratio (CRAR) improved to 16.72% as of December 31, 2024, up from 15.03% in the same period last year. The CET1 ratio also rose to 13.59%, reflecting the bank’s strong capital position.
The results showcase Union Bank’s steady growth trajectory, backed by higher earnings, improved operational metrics, and a sharp focus on asset quality.
