PSU Bank Stock Falls Over 8% After Q4 Results; Profit Rises 6% QoQ

DSIJ Intelligence/ 23 Apr 2026 /Categories: Mindshare, Quarterly Results, Trending

PSU Bank Stock Falls Over 8% After Q4 Results; Profit Rises 6% QoQ

Union Bank reports Q4 PAT of Rs 5,316 crore, up 5.96 per cent QoQ; FY26 profit rises 3.95 per cent YoY with improved asset quality and stable business growth

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The Indian equity markets traded on a weak note on Thursday, with the Nifty 50 declining 0.84 per cent to 24,174.50, down 203.60 points. Banking stocks also witnessed selling pressure, with the Bank Nifty falling 1.46 per cent to 56,291.30.

Amid this weekness, PSU banking stock Union Bank of India opened at Rs 194.89 and declined sharply to Rs 178.00, down Rs 16.05 or 8.27 per cent, and was trading around Rs 178 during the session following the announcement of its Q4FY26 results.

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Union Bank of India Q4FY26 Results: QoQ and YoY Performance

On a QoQ basis, the bank reported stable operational performance. Net profit increased to Rs 5,316 crore in Q4FY26 from Rs 5,017 crore in Q3FY26, up 5.96 per cent QoQ. Net interest income (NII) rose marginally to Rs 9,406 crore from Rs 9,328 crore, reflecting a growth of 0.84 per cent QoQ.

Operating profit increased to Rs 7,955 crore compared to Rs 6,942 crore in the previous quarter, registering a growth of 14.59 per cent QoQ. On a YoY basis, the bank reported steady growth in profitability. Net profit for FY26 stood at Rs 18,697 crore compared to Rs 17,987 crore in FY25, registering a growth of 3.95 per cent YoY.

Union Bank FY26 Annual Performance

For the full financial year FY26, the bank’s total business stood at Rs 23,85,502 crore, registering a growth of 5.78 per cent YoY. Gross advances increased by 9.74 per cent YoY, while total deposits grew by 2.72 per cent YoY. Interest income stood at Rs 1,05,992 crore during FY26. The bank also recommended a Dividend of Rs 5 per equity share for the year, subject to approvals.

Segment and Business Growth

The bank reported strong growth in key segments. Retail advances grew by 16.75 per cent YoY, MSME advances increased by 18.75 per cent YoY, and the overall RAM (Retail, Agri, MSME) segment grew by 12.56 per cent YoY.

The RAM segment constituted 57.49 per cent of domestic advances, indicating continued focus on retail-led growth.

Asset Quality, CASA and Capital Ratios

Asset quality improved during the year, with Gross NPA declining to 2.82 per cent from 3.60 per cent, while Net NPA reduced to 0.48 per cent from 0.63 per cent on a YoY basis.

The bank also reported improvement in its CASA ratio, which increased to 35.21 per cent as of March 31, 2026, compared to 33.51 per cent a year ago, indicating better low-cost deposit mix. Capital adequacy remained strong, with CRAR at 18.10 per cent, while the CET-1 ratio improved to 15.69 per cent, reflecting a comfortable capital position.

About Union Bank of India

Union Bank of India is a public sector bank with a wide network of branches and a strong presence across retail, corporate, and MSME banking segments. The bank offers a range of financial products and services and continues to focus on improving asset quality, expanding retail lending, and strengthening its capital position.