Strong growth in RAM sector; NPAs on a decline
Lucknow | Union Bank of India has reported a robust 11.87% year-on-year (YoY) increase in net profit for the first quarter of the financial year 2025–26, ending June 30, 2025. The public sector lender also witnessed a significant improvement in asset quality, with both gross and net Non-Performing Assets (NPAs) registering a notable decline.
The bank’s board of directors approved the financial results for the quarter, which showed consistent performance across key financial indicators. Interest income rose by 3.53% YoY, while the total business grew by 5.01%, reaching ₹22,14,422 crore. Within this, gross advances increased by 6.83%, and total deposits saw a 3.63% uptick, pushing total deposits to ₹12,39,933 crore as of June 30, 2025.
A major driver of this performance was the RAM (Retail, Agriculture & MSME) segment, which recorded a YoY growth of 10.34%. The retail loan portfolio surged by 25.63%, and MSME advances jumped by 17.65%, highlighting the bank’s continued focus on priority sector lending. RAM loans now account for 58.11% of domestic advances.
On the asset quality front, Union Bank made considerable strides. Gross NPAs dropped to 3.52%, down by 102 basis points (bps) YoY, while net NPAs fell by 28 bps to 0.62%. This reflects the bank’s enhanced credit monitoring and recovery mechanisms.
Union Bank’s first quarter numbers underscore its steady progress in expanding core banking operations while maintaining asset quality. With a sharp focus on inclusive banking through retail and MSME growth, the bank appears well-positioned for the remaining quarters of FY26.
