Union Bank of India’s fiscal first-quarter net profit rose 12% to Rs 4,116 crore compared to Rs 3,679 crore a year ago.

Total income rose to Rs 31,791 crore from Rs 30,874 crore during this period.

Net interest income, however, declined to Rs 9,113 crore in the June quarter from Rs 9,412 crore in the same quarter of the previous fiscal.

Operating profit also fell 11% to Rs 6,909 crore from Rs 7,785 crore.

The bank's asset quality improved, with gross non-performing assets (NPAs) declining to 3.52% at the end of the June quarter from 4.54% a year ago and 3.6% in March.

Net NPAs also declined to 0.62% versus 0.90% in the year-ago period, but remained almost flat at 0.63% in the March quarter.

Provisions for bad loans fell to Rs 1,152 crore during the first quarter compared to Rs 1,675.7 crore a year ago.

Provision coverage ratio (PCR) improved to 94.65% from 93.49%.

Gross advances grew 6.83% year-on-year to Rs 9.74 lakh crore, the weakest in the last four quarters and also the fourth consecutive quarter of single-digit growth.

Deposit growth was weak, increasing by 3.6% from last year. This is the sixth quarter in a row which saw single-digit growth.

The state-owned bank’s deposit and loan growth in FY25 had fallen below guidance. Loan growth for the full-fiscal was 8.6% as against the guidance of between 11% and 13%. Similarly, deposit growth for FY25 stood at 7.2% in comparison to the guidance of 9% to 11%.  

The bank’s total business grew 5% to Rs 22.14 lakh crore in the quarter ended June 2025, compared with Rs 21.09 lakh crore a year ago.

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