State-owned Union Bank of India reported a 12% rise in net profit to Rs 4,116 crore in the June quarter compared with Rs 3,679 crore a year ago.

Total income increased to Rs 31,791 crore in Q1 FY26 from Rs 30,874 crore in the same quarter of the previous fiscal.

However, net interest income fell to Rs 9,113 crore from Rs 9,412 crore a year earlier. 

Operating profit also fell 11% year-on-year to Rs 6,909 crore, compared with Rs 7,785 crore in Q1 FY25.

Net NPAs fell to 0.62% from 0.90% in the same period.

Provisions for bad loans declined to Rs 1,153 crore in Q1 FY26, from Rs 1,651 crore last year. The bank's asset quality improved, with gross non-performing assets (NPAs) falling to 3.52% of gross advances at the end of the June quarter from 4.54% a year ago.

Provision coverage ratio (PCR) improved to 94.65% from 93.49%, an improvement of 116 basis points.

The bank’s total business grew 5% YoY to Rs 22.14 lakh crore from Rs 21.09 lakh crore at the end of June 2024.

Gross advances rose 6.83% to Rs 9.74 lakh crore from Rs 9.12 lakh crore.

Total deposits grew 3.63% YoY to Rs 12.40 lakh crore as on 30 June 2025.

Return on Assets (ROA) rose to 1.11%, up 5 basis points from 1.06% in June 2024.

Capital adequacy ratio stood at 18.3%, compared with 17.02% a year ago.