Union Bank of India (BSE: 532477, NSE: UNIONBANK) — Business Report / Investor Feed
Business & Distribution Evaluation — Union Bank of India (BSE: 532477)
1. Business Identity
Union Bank of India is a public sector bank (PSB) — a Government of India Undertaking — providing banking and related financial services across India and select international markets [1][2][139]. It is a statutory body governed by the Banking Regulation Act, 1949, and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 [29][92]. Incorporated in 1919 and nationalized on 19.07.1969 [92], it is the 5th largest PSB in India by business mix [5][46][85]. The Bank's registered office is at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400021 [12][92].
| Parameter | Detail |
|---|---|
| Sector | Banking — Scheduled Commercial Bank (Public Sector) |
| NIC Code | 64191 — Financial Services: Acceptance of Deposit and lending thereon [41][74] |
| Promoter | Government of India — 74.76% stake [FY25] [1][106][137] |
| Paid-up Equity Capital [FY25] | ₹7,633.60 Crore [1][92] |
| Authorised Capital | ₹10,000 Crore [1] |
| Amalgamation History | Merged with erstwhile Corporation Bank and Andhra Bank (effective April 2020); 700+ overlapping branches rationalized post-merger [7][73][97] |
| Geographic Presence | 29 States + 5 UTs domestically; 2 countries internationally [41][100] |
| Workforce | ~73,900+ employees [5][89][139] |
GoI Shareholding Trend:
The progressive dilution from ~83.5% to ~74.8% provides flexibility for future equity issuance while maintaining comfortable majority government control [47]. GoI provided sizeable capital support of ₹41,597 Cr during FY2018–FY2021 [137].
Market Position [FY25]:
| Metric | Value | Source |
|---|---|---|
| PSB Rank (Business Mix) | 5th Largest | [5][46][85] |
| Market Share — Advances (Dec-25) | ~5.0% | [137] |
| Market Share — Deposits (Dec-25) | ~5.1% | [137] |
| Share among PSBs (Business) | ~8.7% (H1 FY26) | [46] |
| MSME Lending Rank | 3rd Largest among PSBs | [11] |
| Agriculture Lending Rank | 3rd Largest among PSBs | [11] |
| Retail Lending Rank | 4th Largest among PSBs | [11] |
| EASE Reform Index | 2nd Best Bank Q1 FY25; 1st under "Banking towards Viksit Bharat" | [15][49] |
| CGTMSE | 1st Position — Highest Credit Guarantee Coverages & Women MSEs | [16] |
| Forex Market Share (SCB) | 10.98% [FY25] vs 8.12% [FY24] | [58][84] |
Note: ICRA (Mar 2026) [137] confirms market share at 5.0% of net advances and 5.1% of deposits as of December 31, 2025 — signifying systemic importance. The Bank is "yet to be classified as a domestic systemically important bank (D-SIB)" [128][131].
Credit Ratings [Latest Available]:
| Rating Agency | AT-1 | Tier-II | Issuer | Rating Date |
|---|---|---|---|---|
| CRISIL | AA+/Stable | AAA/Stable | — | 11.12.2025 [79][105] |
| ICRA | — | AAA/Stable | — | 06.12.2025 [79] |
| India Ratings | AA+/Stable | AAA/Stable | — | 17.01.2025 [79] |
| CARE | AA+/Stable | AAA/Stable | — | 16.09.2025 [79] |
| Brickwork | AA+/Stable | AAA/Stable | — | 18.09.2025 [79] |
| S&P Global | — | — | BBB/Stable | 20.11.2025 [79] |
| Fitch Ratings | — | — | BBB-/Stable | 11.03.2025 [79] |
Key upgrade: S&P Global upgraded the issuer rating from BBB-/Positive to BBB/Stable [79][105].
2. Revenue Architecture
Revenue Model
Interest-spread based: The Bank earns primarily from the spread between interest earned on advances/investments and interest paid on deposits/borrowings, supplemented by fee-based income (commissions, exchange profits, treasury gains, and third-party product distribution).
Turnover composition [FY25]: Acceptance of Deposits accounts for 57.13% of turnover, while Credit Finance accounts for 42.87% [31][132].
Pricing mechanism: The share of EBLR-linked loans in total outstanding floating rate loans rose from ~25–26% (9M FY22) [95][129] to 60.6% at end-December 2024 [13]. As of Q1 FY24, ~90% of loans were floating rate, linked to either MCLR (~49%) or EBLR [136]. Management has guided NIM of ~3% as a target floor [34][35], with actual NIM at 2.91% [FY25] declining to 2.67% [9M FY26] [22].
Income & Expenditure — Multi-Year Trend (₹ Cr)
| Particulars | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Interest Earned | 67,944 [76][138] | 80,743 [67][138] | 1,00,376 [134] | 1,08,417 [134] |
| — Interest on Advances | — | — | 72,156 [134] | 79,256 [134] |
| — Income on Investments | — | — | 22,829 [134] | 23,631 [134] |
| — Interest on RBI/Interbank | — | — | 4,891 [134] | 5,125 [134] |
| — Others | — | — | 500 [134] | 406 [134] |
| Interest Expended | 40,157 [76][138] | 47,978 [138] | 63,364 [134] | 70,733 [134] |
| — Interest on Deposits | — | — | 58,630 [134] | 66,375 [134] |
| — Interest on RBI/Interbank | — | — | 2,990 [134] | 2,754 [134] |
| — Others | — | — | 1,744 [134] | 1,605 [134] |
| Net Interest Income | 27,786 [73][138] | 32,765 [138] | 36,570 [101] | 37,214 [54][101] |
| Other Income | 12,525 [138] | 14,633 [138] | 17,813 [134] | 21,562 [134] |
| — Commission/Exchange/Brokerage | — | — | 2,341 [134] | 2,649 [134] |
| — Profit on Sale of Investments | — | — | 1,792 [134] | 2,232 [134] |
| — Profit on Revaluation of Inv. | — | — | 330 [134] | 1,149 [134] |
| — Profit on Exchange Transactions | — | — | 919 [134] | 826 [134] |
| — Miscellaneous Income | — | — | 12,428 [134] | 14,703 [134] |
| Total Income | 80,469 [76] | 95,376 [138] | 1,18,188 [91] | 1,29,979 [91] |
| Operating Expenses | 18,438 [138] | 21,931 [138] | 26,506 [134] | 28,044 [134] |
| — Employees Cost | — | — | 14,593 [134] | 14,996 [134] |
| — Depreciation | — | — | 896 [134] | 1,084 [134] |
| — Insurance | — | — | 1,264 [134] | 1,416 [134] |
| — Other Expenditure | — | — | 7,362 [134] | 7,943 [134] |
| Operating Profit | 21,873 [138] | 25,467 [138] | 28,319 [91] | 31,202 [91] |
| Provisions | 16,641 [138] | 17,034 [138] | 14,562 [54] | 13,103 [54] |
| Net Profit | 5,232 [73][138] | 8,433 [138] | 13,648 [54] | 17,987 [54][139] |
| EPS (₹) | — | — | 18.95 [54] | 23.56 [54] |
| Dividend per Share (₹) | 1.90 [80] | — | 3.60 [44] | 4.75 [54][89] |
3-Year CAGR (FY22–FY25): PAT 51.0%, Interest Income 16.9%, Operating Profit 12.6% [derived from [336]][134].
PAT grew at a 51% CAGR (FY22–FY25) while operating profit grew at only 12.6% — the disproportionate profit acceleration was driven by provisions declining from ₹16,641 Cr to ₹13,103 Cr, not by revenue outperformance. As credit costs normalize, PAT growth will converge towards operating profit growth rates.
Note on Total Income: Standalone segment revenue: ₹1,27,539 Cr [109][121]; consolidated segment revenue: ₹1,29,979 Cr [81][120]. The difference reflects subsidiary/JV revenues.
Non-Interest Income [FY25 vs FY24]
| Particulars (₹ Cr) | FY24 | FY25 | YoY Growth |
|---|---|---|---|
| Fee-based Income | 8,182 | 10,285 | +25.71% |
| — Processing Charges | 1,502 | 1,673 | +11.38% |
| — Commission on Insurance | 353 | 530 | +50.14% |
| — Fee on PSLC Certificates | 582 | 955 | +64.09% |
| — Commission on CMS | 628 | 788 | +25.48% |
| — Commission from LC/BG | 1,031 | 1,043 | +1.16% |
| — Income from Debit/Credit Card | 1,245 | 1,282 | +2.97% |
| — Others | 2,841 | 4,014 | +41.29% |
| Treasury Income | 2,849 | 4,186 | +46.92% |
| Recovery in Write-Off | 3,987 | 4,311 | +8.12% |
| Interest on Income Tax Refund | 1,062 | 1,112 | +4.73% |
| Total Non-Interest Income | 16,080 | 19,813 | +23.21% |
Note: The sharp increase in fee "Others" includes reclassified penal charges per RBI guidelines, impacting NIM by ~10 bps in Q3 FY25 [64][66].
Third-Party Product Income (Wealth Management Vertical) [FY25 vs FY24]
| Product (₹ Cr) | FY24 | FY25 | YoY Growth |
|---|---|---|---|
| Life Insurance | 278.40 | 451.47 | +62.17% |
| Non-Life Insurance | 29.76 | 37.16 | +24.88% |
| Health Insurance | 54.49 | 53.10 | -2.55% |
| Mutual Funds | 20.80 | 29.74 | +42.95% |
| Merchant Banking | 5.06 | 7.45 | +47.23% |
| Total | 388.50 | 578.91 | +49.01% |
Source: [142]. Note: An earlier extraction [56] showed ₹567.75 Cr — the ₹578.91 Cr figure from the Annual Report [142] is the authoritative version and reconciles with the Hindi Annual Report reference [84].
Bancassurance partners: SUD Life, India First Life Insurance, Care Health, Manipal Cigna, Bajaj Allianz, Chola MS, United India Insurance — 38 insurance products live on digital platform [33]. Mutual fund distribution via "Union Invest" portal with 19 AMCs [33].
PSLC Trading Income [FY25]
| PSLC Category | Sold (₹ Cr) | Purchased (₹ Cr) | Commission Earned (₹ Cr) | Commission Paid (₹ Cr) |
|---|---|---|---|---|
| PSLC-SFMF | 50,000 | — | 955.08 | — |
| PSLC-Agriculture | — | 39,000 | — | 231.43 |
| PSLC-Micro | — | 6,000 | — | 0.67 |
| PSLC-General | — | 41,000 | — | 4.59 |
| Total | 50,000 | 86,000 | 955.08 | 236.70 |
Source: [56]. Net PSLC income: ₹718.38 Cr [FY25] vs ₹552.01 Cr [FY24].
Segment Revenue — Multi-Period Trend (₹ Cr)
| Segment | FY24 | FY25 (S) | FY25 (C) | H1 FY26 | % of FY25 (C) |
|---|---|---|---|---|---|
| Treasury Operations | 30,682 [39] | 32,848 [109] | 32,848 [81] | 16,704 [81] | ~25.3% |
| Retail Banking Operations | 40,076 [39] | 45,092 [109] | 45,092 [81] | 23,215 [81] | ~34.7% |
| — (a) Digital Banking | 942 [39] | 964 [109] | 964 [81] | 583 [81] | ~0.7% |
| — (b) Other Retail Banking | 39,134 [39] | 44,128 [109] | 44,128 [81] | 22,632 [81] | ~34.0% |
| Corporate/Wholesale Banking | 42,224 [39] | 46,022 [109] | 46,022 [81] | 22,224 [81] | ~35.4% |
| Other Banking Operations | 1,813 [39] | 2,464 [109] | 2,464 [81] | 739 [81] | ~1.9% |
| Unallocated | 1,062 [121] | 1,112 [121] | 3,553 [81] | 1,678 [81] | ~2.7% |
| Total Segment Revenue | 1,15,858 (S) | 1,27,539 (S) [109] | 1,29,979 [81] | 64,559 | 100% |
Four segments per AS-17: Treasury, Retail, Corporate/Wholesale, and Other Banking Operations. Digital Banking is a sub-segment of Retail per RBI guidelines [106][110].
Segment Profitability (PBT) — Multi-Period Trend (₹ Cr)
| Segment | FY22 | FY24 | FY25 | H1 FY26 | 9M FY26 |
|---|---|---|---|---|---|
| Treasury Operations | 6,003 [61] | 5,241 | 5,833 [81] | 3,684 [81] | 4,110 [42] |
| Retail Banking Operations | 4,509 [61] | 6,569 | 8,753 [81] | 3,783 [81] | 6,513 [42] |
| — (a) Digital Banking | — | 750 | 735 [81] | 452 [81] | 522 [42] |
| — (b) Non-Digital Retail | — | 5,819 | 8,018 [81] | 3,331 [81] | 5,991 [42] |
| Corporate/Wholesale Banking | (3,094) [61] | 7,587 | 6,437 [81] | 2,279 [81] | 4,431 [42] |
| Other Banking | 758 [61] | 972 | 1,344 [81] | 370 [81] | 637 [42] |
| Total PBT | 8,579 | 21,430 (S) | 23,479 (S) [109] | 10,721 [81] | 17,281 [42] |
| Net Profit After Tax | 5,232 [73] | 13,648 [109] | 17,987 [109][139] | 8,418 [81] | 13,381 [42] |
Notable: Corporate/Wholesale Banking turned from loss-making (₹-3,094 Cr in FY22) to highly profitable (₹6,437 Cr in FY25). H1 FY26 shows moderation in Corporate PBT to ₹2,279 Cr vs ₹3,319 Cr in H1 FY25 [81].
Key Profitability & Efficiency Metrics — Multi-Year Trend
| Metric | FY22 | FY23 | FY24 | FY25 | 9M FY26 |
|---|---|---|---|---|---|
| NIM (%) | 2.94 [73] | 3.07 [52] | 3.10 [18] | 2.91 [18] | 2.67 [22] |
| RoA (%) | 0.47 [7] | ~0.69–1.01 [128] | 1.03 [18] | 1.25–1.26 [54][139] | 1.20 [137] |
| RoE (%) | — | — | 15.58 [54] | 17.20 [54][139] | 15.64 (ann.) [137] |
| Credit Cost (%) | 1.74 [80] | 1.77 [57] | 0.74 [26] | 0.77 [26] | 0.22 (Q2) [22] |
| Cost-to-Income (%) | 45.7 [63] | 46.3 [63] | 46.4 [63] | 45.48 [54] | — |
| Cost of Deposits (%) | — | — | 5.22 [62] | 5.53 [62] | — |
| Cost of Funds (%) | — | 4.26 [128] | — | — | 5.37 (9M FY26) [137] |
| Yield on Advances (%) | — | — | 8.73 [62] | 8.74 [62] | — |
| Operating Profit / ATA (%) | 1.65 [128] | 1.98 [128] | — | 1.93 [137] | 1.68 [137] |
NIM compressed from peak 3.10% (FY24) to 2.67% (9M FY26) — a 43 bps decline — yet RoA improved from 0.47% (FY22) to 1.25% (FY25). This divergence was sustained by plunging credit costs (1.74% → 0.77%). With credit costs already near cyclical lows, further RoA expansion will require either NIM stabilization or continued fee income acceleration — both face headwinds in the current rate environment.
Key observations:
- NIM compressed from peak 3.10% (FY24) to 2.91% (FY25) to 2.67% (9M FY26), driven by deposit repricing outpacing lending rate adjustments.
- Despite NIM compression, RoA improved from 0.47% to 1.25% over FY22–FY25, reflecting dramatically lower credit costs (1.74% → 0.77%) and improved fee income.
- 9M FY26 moderation: Operating profit/ATA declined to 1.68% from 2.09% in 9M FY2025 [137]. ICRA notes the bank reported "strong trading gains of ₹1,923 crore in 9M FY2026" [137] — implying core operating earnings weakened materially.
- Cost-to-Income ratio at 45.48% [FY25] slightly above management target of <45% [9][67].
Productivity Metrics [FY25 vs FY24]
| Metric | FY24 | FY25 |
|---|---|---|
| Business per Employee (₹ Cr) | 28.02 | 31.00 [54] |
| Business per Branch (₹ Cr) | 251.17 | 265.94 [54] |
| Gross Profit per Employee (₹ Lakh) | 37.18 | 42.04 [54] |
| Net Profit per Employee (₹ Cr) | 0.18 | 0.24 [56] |
Quarterly Revenue Trajectory — FY22 to FY23 (₹ Cr)
| Metric | Q4 FY22 | Q1 FY23 | Q2 FY23 | Q3 FY23 | Q4 FY23 | FY22 | FY23 | YoY% |
|---|---|---|---|---|---|---|---|---|
| Interest Income | 17,174 | 18,174 | 19,682 | 20,883 | 22,005 | 67,944 | 80,743 | +18.84 |
| Interest Expense | 10,405 | 10,593 | 11,377 | 12,255 | 13,754 | 40,157 | 47,978 | +19.47 |
| NII | 6,769 | 7,582 | 8,305 | 8,628 | 8,251 | 27,786 | 32,765 | +17.92 |
| Non-Interest Income | 3,243 | 2,817 | 3,276 | 3,271 | 5,269 | 12,525 | 14,633 | +16.83 |
| — Fee-based Income | 1,827 | 1,679 | 1,602 | 1,710 | 1,699 | 5,459 | 6,690 | +22.54 |
| — Treasury Income | 1,122 | 385 | 433 | 471 | 608 | 3,912 | 1,896 | -51.53 |
| — Recovery in W/O | 294 | 503 | 1,003 | 1,090 | 2,954 | 2,750 | 5,549 | +101.81 |
| Operating Profit | 5,520 | 5,448 | 6,577 | 6,619 | 6,823 | 21,873 | 25,467 | +16.43 |
| Provisions | 4,080 | 3,890 | 4,729 | 4,374 | 4,041 | 16,641 | 17,034 | +2.36 |
| Net Profit | 1,440 | 1,558 | 1,848 | 2,245 | 2,782 | 5,232 | 8,433 | +61.18 |
Source: [138]. Recovery in write-off accounts surged from ₹2,750 Cr (FY22) to ₹5,549 Cr (FY23) — a significant contributor to profit growth alongside core operating improvement.
3. Product & Service Portfolio
Core Banking Products [FY25]
| Product/Vertical | Outstanding (₹ Cr) | YoY Growth | Lifecycle Stage |
|---|---|---|---|
| Retail Advances | 2,16,777 [143] | +22.14% | Growth |
| — Home Loans | 94,825 [143] | +10.16% | Growth |
| — Vehicle Loans | 22,462 [143] | +10.43% | Growth |
| — Education Loans | 15,912 [143] | +13.12% | Growth |
| — Mortgage Loans | 16,152 [143] | +7.37% | Mature |
| — Others | 67,426 [143] | +60.75% | Growth |
| MSME Advances | 1,36,423 [143] | +12.50% | Growth |
| — Micro | 68,416 [143] | +11.49% | Growth |
| — Small | 43,896 [143] | +16.80% | Growth |
| — Medium | 24,111 [143] | +8.00% | Mature |
| Agricultural Advances | 1,78,479 [143] | -2.91% | Mature |
| — Farm Credit (Crop, Investment & Allied) | 1,44,214 [143] | +2.72% | Mature |
| — Agri Ancillary Activities | 32,505 [143] | -21.87% | Declining |
| — Agri Infrastructure | 1,760 [143] | -3.61% | Declining |
| Corporate Advances | 4,51,215 [143] | +6.85% | Mature |
| Gold Loans | ~84,000 (Q3 FY26) [23] | 53% YoY (9M FY24) | Growth |
| Green Finance Portfolio | 28,742 [FY25] → 36,604 [Q3 FY26] | — | Growth/New |
Note on Retail "Others": This category shows ₹67,426 Cr per the FY25 investor presentation [143] vs ₹56,202 Cr per [72]. The discrepancy likely reflects different classification bases (domestic vs global). Regardless, this fast-growing, poorly-disclosed category warrants investor attention.
Retail share of domestic advances: 22.92% [143]. Agriculture: 18.87% of domestic advances [143]. MSME: 14.42% of domestic advances [143].
Management on corporate strategy [FY25]: "We have not grown sincerely [in large corporates]. We thought that we will restructure our portfolio, we will allow low-ending advances to repay and we'll go for the balancing of the portfolio" [124].
Dec-25 Update (Q3 FY26) [93]:
| Segment | Dec-25 (₹ Cr) | YoY Growth |
|---|---|---|
| Retail | 2,45,541 | +21.67% |
| Agriculture | 1,75,294 | -5.39% |
| MSME | 1,56,203 | +19.75% |
| RAM (Sub-total) | 5,77,038 | +11.5% |
| Large Corporate | 3,94,999 | +5.09% |
| Global Advances | 10,16,884 | +7.13% |
Advances Mix — 5-Year Trend (₹ Cr)
| Segment | Mar-21 | Mar-22 | Mar-23 | Mar-24 | Mar-25 | Dec-25 |
|---|---|---|---|---|---|---|
| Retail | 1,20,124 [40] | 1,36,273 [57] | 1,59,702 [57] | 1,77,488 [143] | 2,16,777 [143] | 2,45,541 [93] |
| Agriculture | 1,24,897 [40] | 1,33,092 [57] | 1,51,993 [57] | 1,83,833 [143] | 1,78,479 [143] | 1,75,294 [93] |
| MSME | — | 1,10,577 [57] | 1,25,022 [57] | 1,21,269 [143] | 1,36,423 [143] | 1,56,203 [93] |
| RAM (Sub-total) | — | 3,79,942 [57] | 4,36,717 [57] | 4,82,590 [143] | 5,31,679 [143] | 5,77,038 [93] |
| LC & Others | — | 3,36,466 [98] | 3,73,188 [102] | 4,22,294 [143] | 4,51,215 [143] | 3,94,999 [93] |
| Total Gross Advances | 6,34,583 [40] | 7,16,408 [57] | 8,09,905 [57] | 9,04,884 [143] | 9,82,894 [143] | 10,16,884 [93] |
| YoY Growth (%) | — | 12.93 | 13.05 | 11.73 | 8.62 [139] | 7.13 |
Credit growth decelerating: 13.05% → 11.73% → 8.62% → 7.13%. Agriculture turned negative in FY25, reflecting deliberate reclassification.
MSME Lending — Detailed [FY25]
| Scheme/Campaign | Accounts | Amount (₹ Cr) |
|---|---|---|
| Digital STP Journeys (MSME) | 1,15,637 | 3,707 [86] |
| PMMY (Total FY25) | 7,10,680 | 18,649 [86] |
| PMEGP | 7,072 | 1,010 [86] |
| PM Vishwakarma | 19,761 | 173 [86][105] |
| Standup India | 1,300 | 249 [86] |
| Union Solar (New Product) | 462 | 423 [86] |
| CGTMSE Covered | 3,02,552 | 17,481 [86] |
Green Finance Portfolio — Growth Trajectory
| Period | Renewable Energy (₹ Cr) | Union Green Miles — EV (₹ Cr) | Total Green Finance (₹ Cr) |
|---|---|---|---|
| Jun-23 | 10,939 [28] | 260 [28] | — |
| Mar-25 | 27,668 [43] | 779 [43] | 28,742 [43][139] |
| Q3 FY26 | 34,967 [70] | 1,637 [70] | ~36,604 |
Planned Green Bond issuance: ₹5,000 Cr [58]. Net-zero commitment by 2035 [89]. PCAF signatory [139].
Deposit Franchise — 5-Year Trend (₹ Cr)
| Parameter | Mar-21 | Mar-22 | Mar-23 | Mar-24 | Mar-25 |
|---|---|---|---|---|---|
| Total Deposits | 9,21,633 | 10,32,102 | 11,17,716 | 11,99,199 | 12,71,745 |
| Retail Term Deposit | 3,93,473 | 4,47,285 | 4,41,287 | 4,58,949 | 4,98,255 |
| Bulk Deposit | 1,92,562 | 2,07,716 | 2,70,837 | 3,30,178 | 3,47,248 |
| Term Deposit Total | 5,86,035 | 6,55,001 | 7,12,124 | 7,89,127 | 8,45,503 |
| CASA | — | 3,77,193 [57] | 3,94,055 [57] | 4,10,134 [62] | 4,26,325 [62] |
| CASA Ratio (%) | 36.33 [80] | 36.54 [57] | 35.62 [57] | 34.20 [62] | 33.52 [62] |
Source: [83][135]. RBI directive changed retail term deposit threshold from <₹2 Cr to <₹3 Cr effective 15.06.2024 [135].
Retail Term Deposit by Geography (₹ Cr) [135]:
| Location | Mar-22 | Mar-23 | Mar-24 | Mar-25 |
|---|---|---|---|---|
| Rural | 37,516 | 40,667 | 44,940 | 51,486 |
| Semi-Urban | 65,038 | 69,509 | 74,976 | 82,970 |
| Urban | 1,16,448 | 1,13,040 | 1,18,771 | 1,30,067 |
| Metropolitan | 2,28,282 | 2,18,071 | 2,20,263 | 2,33,733 |
| Bank Total | 4,47,285 | 4,41,287 | 4,58,949 | 4,98,255 |
Metro/Urban contribute 73% of retail term deposits but only 41% of branches — revealing the disproportionate deposit-gathering power of urban centres.
Term Deposit Growth Trends (₹ Cr, Absolute Change) [135]:
| Parameter | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Retail TD Growth | +33,835 | +50,279 | -5,997 | +17,662 | +39,306 |
| Bulk Deposit Growth | -16,185 | +15,154 | +63,120 | +59,341 | +17,070 |
| Total Deposit Growth | +56,650 | +1,10,469 | +85,614 | +81,483 | +72,546 |
FY25 shows a deliberate shift: Retail TD mobilization surged (+₹39,306 Cr vs +₹17,662 Cr in FY24) while bulk deposit growth was curtailed to ₹17,070 Cr (from ₹59,341 Cr). This reflects management's stated policy of moving towards a 75:25 retail:bulk mix [24][90].
CASA ratio trajectory: 36.54% (Mar-22) → 35.62% (Mar-23) → 34.20% (Mar-24) → 33.52% (Mar-25) → ~34% (Dec-25) [137]. ICRA notes CASA remains below the PSB average (~36%) [137].
FY26 Deposit Targets [135]: Total 1st Instalment Collection target of ₹1,500 Cr for Apr-25; FY26 target ₹18,000 Cr (₹1,500 Cr/month). FD targeting ₹8,000 Cr in FY26 (₹2,000 Cr/quarter). STP journey for FD/RD targeting 10,000 NTB accounts with ₹1,000 Cr funding.
New Product Launches & Digital Journeys
- Union Green Home Loan — ₹197 Cr [108]; financing eco-friendly homes [139]
- PM Vidyalaxmi — Education loan for top 860 QHEIs [108]
- Digital KCC STP — Rolled out across Karnataka, MP, UP, Odisha, Tamil Nadu [114]
- VYOM 2.0 — Revamped mobile banking with 400+ features [55][139]
- Union Solar — 462 units, ₹423 Cr [86]
- Project Sambhav — Digital Business Platform; 7 digital journeys live [96][112]
- 56 digital journeys launched as of Q3 FY26 (6 new in Q3) [141]
- Structured derivative desk planned for FX customer hedging and structured loan products [142]
- TradeNxt — Digital trade services platform for exports, imports, guarantees [103]
Subsidiaries, Joint Ventures & Associates
| Entity | Holding (%) | Key Function | Key Data |
|---|---|---|---|
| Union Asset Management Co. | 100% | MF AUM ₹25,822 Cr (Q3 FY26) [16] | PAT: ₹13.29 Cr (FY23) [123] |
| UBI Services Ltd. | 100% | Retail loan sourcing; 4,500+ staff, 18 ZOs, 134 ROs [45][125] | PAT: ₹2.46 Cr (FY23) → ₹7.73 Cr (9M FY24) [123][116] |
| Union Bank of India (UK) Ltd. | 100% | UK/Europe banking; Equity ₹1,136 Cr [37] | PAT: ₹36.06 Cr (9M FY24) [116] |
| Star Union Dai-ichi Life Insurance | 25.10% | 170-171 branch offices [69]; 1,500+ employees [123] | PAT: ₹127.16 Cr (FY23) [123] |
| IndiaFirst Life Insurance | 9% (post-divestment) [118] | Long-term agency distribution agreement continues [118] | — |
| Chaitanya Godavari Grameen Bank (RRB) | 35.00% | 276 CBS branches across 8 AP districts | PAT: ₹302.25 Cr [FY25], GNPA 0.55% [114] |
Total investment in subsidiaries/JVs/associates: ₹1,671.05 Cr [FY25] vs ₹1,533.02 Cr [FY24] [4].
4. Value Chain Position
Union Bank operates as a full-service commercial bank — an intermediary between depositors (liability side) and borrowers (asset side) [139].
Key inputs: Customer deposits (₹13.10 Trillion [FY25] [140]), equity capital (net worth ₹1,05,058 Cr [106]), wholesale/inter-bank borrowings. Value addition: Credit underwriting, risk assessment, maturity transformation, payments infrastructure, financial advisory, third-party product distribution. Key outputs: Loans (retail, agriculture, MSME, corporate), treasury/investment income, fee-based services, insurance/MF distribution commissions.
Direction of integration: Moderate forward integration via:
- UBI Services Ltd. — 4,500+ staff across 18 ZOs / 134 ROs as dedicated sales engine [45][125]
- In-house digital platform (VYOM, 56 digital journeys, Project Sambhav) [21][96][141]
- Co-lending with NBFCs/fintechs — 84 empaneled, 18 onboarded [112]; 90-100+ active [60]
- Wealth Management vertical with dedicated WRMs [33]
- Treasury Relationship Group driving FX acquisition; planned structured derivative desk [142]
- Account Aggregator ecosystem — First PSB live as both FIU and FIP; integrated with 13 AAs [107]
- CRM Edge (ZOHO-integrated) channelizing leads across all channels [104][136]
- Digital Contact Centre — evolved from inbound call centre to "a kind of business engine for the bank" for sales and service [136]
International Trade Finance Network [FY25]
| Metric | FY24 | FY25 | Growth |
|---|---|---|---|
| Authorized Dealing Branches | — | 119 [6][83] | — |
| RMA Relationships | — | 794 banks across 93 countries [6][117] | — |
| Nostro Accounts | — | 34 banks in 15 currencies [6][117] | — |
| Forex Market Share | 8.12% | 10.98% [58] | +286 bps |
| Forex/Export Credit Turnover (₹ Cr) | 17,647 | 23,684 [117] | +34.21% |
| Overseas Business (₹ Cr) | 53,583 | 74,918 [54] | +39.83% |
| Overseas Net Profit (₹ Cr) | 109 | 190 [54] | +74.31% |
TradeNxt platform launched — first PSB to go live [103]. Awards: CITI STP Excellence, J.P. Morgan Elite Quality Recognition, FIEO Export Excellence Gold Award (consecutive years) [140].
Sectoral Credit Distribution — Domestic Advances (₹ Cr, % Share)
| Sector | Dec-22 | Sep-24 | Mar-25 | Dec-25 |
|---|---|---|---|---|
| Infrastructure | 1,16,437 (14.87%) [78] | 91,028 (10.18%) [133] | 93,034 (9.83%) [65] | 96,583 (9.85%) [14] |
| NBFCs & HFCs | 1,06,400 (13.59%) [78] | 1,13,507 (12.69%) [133] | 1,33,973 (14.16%) [65] | 1,47,393 (15.03%) [14] |
| Basic Metals | 23,514 (3.00%) [78] | 25,666 (2.87%) [133] | 23,745 (2.51%) [65] | 26,820 (2.73%) [14] |
| Petroleum/Coal | 22,845 (2.92%) [78] | 13,020 (1.46%) [133] | 17,269 (1.83%) [65] | 17,866 (1.82%) [14] |
| Top 4 Total | ~34.4% | ~27.2% | ~28.3% | ~29.4% |
Key concern — NBFC Exposure:
| Category | Dec-22 | Mar-25 | Dec-25 |
|---|---|---|---|
| HFCs | 35,467 [78] | 29,756 [65] | 34,936 [14] |
| PSU & PSU-backed NBFCs | 32,659 [78] | 28,099 [65] | 33,566 [14] |
| Private NBFCs | 38,274 [78] | 76,118 [65] | 78,891 [14] |
| Total | 1,06,400 | 1,33,973 | 1,47,393 |
Private NBFC exposure doubled from ₹38,274 Cr (Dec-22) to ₹78,891 Cr (Dec-25) — a 106% increase — while HFC and PSU-NBFC exposure remained relatively flat. With non-priority services GNPA nearly doubling from 0.88% to 1.65% [75] and no separate credit quality disclosure for the private NBFC sub-portfolio, this concentration warrants close monitoring.
Infrastructure — Renewable Energy Shift
| Sub-sector | Dec-22 | Mar-25 | Dec-25 |
|---|---|---|---|
| Power — Renewable Energy | 4,400 [78] | 13,394 [65] | 16,442 [14] |
| Power — Thermal | 27,379 [78] | 13,957 [65] | 16,809 [14] |
Renewable energy grew 3.7x from Dec-22 to Dec-25 — clear portfolio rotation towards green infrastructure.
5. Distribution Architecture
Branch Network — Comprehensive Multi-Year Trend
| Metric | Dec-21 | Q2 FY23 | FY25 (Mar-25) | Jun-25 | Q3 FY26 (Dec-25) |
|---|---|---|---|---|---|
| Total Branches | 9,113 [111] | 8,729 [119] | 8,621 [68][139] | 8,649 [131] | 8,671 [137] |
| ATMs | 11,455 [111] | 11,092 [119] | 8,910 [139] | — | 8,300 [70] |
| Business Correspondents | 8,216 [111] | 16,109 [119] | 23,500+ [139] | — | 26,541 [70] |
| Employees | — | — | 73,900+ [139] | — | — |
Key trends:
- Post-amalgamation rationalization: 700+ overlapping branches closed post-merger [97]; network shrank from 9,113 to ~8,500 before net additions resumed.
- ATM network rationalized from 11,455 to 8,300 — a 27.6% reduction — reflecting industry shift to digital.
- BC network grew from 8,216 to 26,541 — a 223% increase — aggressive push for last-mile inclusion.
- Management plans 200–250 additional branches annually [77]; FY25 saw 201 new branches opened and 46 rationalized [19]. 51 growth hotspots identified nationally [87].
Branch Distribution by Tier [FY25]
| Category | Start (01.04.24) | Opened | Rationalized | End (31.03.25) | % Share |
|---|---|---|---|---|---|
| Rural | 2,540 | 53 | -1 | 2,597 | 30% |
| Semi-Urban | 2,436 | 95 | -13 | 2,521 | 29% |
| Urban | 1,728 | 31 | -15 | 1,735 | 20% |
| Metro | 1,760 | 22 | -17 | 1,766 | 21% |
| Total (Domestic) | 8,464 | 201 | -46 | 8,619 | 100% |
| Overseas | — | — | — | 2 | — |
Source: [19][51]. 59% of branches in rural and semi-urban centres [2][100].
Wage cost distribution (proxy for staffing intensity) [FY25] [53]: Metro/Urban account for 65.5% of wage costs despite representing only 41% of branches — indicating substantially higher staffing in urban centres.
Specialized Distribution Outlets — Multi-Year Trend
| Outlet Type | Dec-21 | Q2 FY23 | FY25 | Q3 FY26 |
|---|---|---|---|---|
| MSME Loan Points (MLP) | 126 [111] | 126 [119] | 135 [36] | 138 [70] |
| Union MSME First Branches | — | 105 [119] | 114 [36] | 113 [70] |
| Retail Loan Points (RLP) | 130 [111] | 207 [119] | 137 [5] | 143 [70] |
| Gold Loan Points | — | 1,331 [126] | 1,685 [5] | 1,675 [70] |
| Large Corporate Branches | — | — | 12 [3] | 12 [70] |
| Mid Corporate Branches | — | — | 38 [3] | 38 [70] |
| SAMBs | — | — | 3 [5] | 3 [70] |
| ARBs | — | — | 30 [5] | 28 [70] |
| RSETIs | — | — | 32 [43] | 37 [70] |
Two additional SAMBs opened at Bangalore & Delhi headed by General Managers for enhanced NPA recovery monitoring [142]. Recovery operations also utilize BCs holding IIBF certificates as recovery agents for NPAs <₹10 lakh [142]. Mega OTS camps on 1st and 3rd Saturdays monthly; additional Lok Adalats in consultation with DLSA and DRT [142].
Overseas Distribution [FY25]
| Location | Type | Details |
|---|---|---|
| Dubai (DIFC) | Overseas Branch | [94][100] |
| Sydney | Overseas Branch | [94][100] |
| London, UK | Banking Subsidiary (100%) | Union Bank of India (UK) Ltd [37] |
| Kuala Lumpur, Malaysia | JV (25%) | India Intl Bank (Malaysia) BHD [69] |
| Total Overseas Net Profit | ₹190 Cr (FY25) vs ₹109 Cr (FY24) [54] |
Digital Distribution
| Metric | Value | Period |
|---|---|---|
| Digital Business Generated | ₹66,000+ Cr [18][82] → ₹25,200 Cr+ (9M FY26) [141] | FY25 / 9M FY26 |
| Digital Lending Journeys | 56 journeys launched (6 new in Q3 FY26) [141] | Q3 FY26 |
| VYOM + Internet Banking Onboarded | 46.19 lakh (VYOM: 39.24L; IB: 6.95L) [82] | FY25 |
| Registered Mobile Platform Users | 29.1 million [49] | Sep-24 |
| VYOM Total Users | 53 lakh+ [8] | Q3 FY26 |
| Digital CASA Opened (9M FY26) | 7,36,843 Savings + 349 Current [141] | 9M FY26 |
| Liabilities A/Cs Opened Digitally | ~80% [59] | Q3 FY26 |
| MSME Loan Renewals (digital, ≤₹10L) | 94-99% STP [25][86] | FY25 |
| Digital Transactions as % of Total | 78% [60] | 9M FY23 |
| UPI Volume Growth | +36% YoY [48] | FY25 |
| WhatsApp Banking (UVConn) | 45 lakh+ users; 70+ services [82] | FY25 |
| Metaverse Banking ("Uni-verse") | 3.69 lakh+ hits [82] | FY25 |
| CBDC | First in Cohort 2 for CBDC-Retail; Wholesale CBDC with programmability [141] | FY25 |
| Fintech Partners | 84 empaneled; 18 onboarded [112] | FY25 |
| Digital Segment Revenue (₹ Cr) | 964 [FY25] / 583 (H1 FY26) [81] | |
| Insurance on Digital Platform | 38 out of 50 products live [33] | Mar-25 |
Digital segment revenue is ~0.7% of total — nascent but growing. Management targets: 50% of RAM acquisition digitally, ₹1 trillion CASA through digital channels, 350+ digital journeys over 2–3 years [25][122]. As of Q3 FY26, 56 journeys are live vs the 350+ target [141].
Digital strategy articulation (Q1 FY24 earnings call) [136]:
- Building "350 plus seamless journeys for various banking services" with omnichannel experience
- "Hyperpersonalized experience on mobile app" using AI and conversational AI
- Digital Contact Centre transformation: "from the current call centre... this contact centre will actually be a sales and service centre for the bank"
- Data Lake and Analytics Centre of Excellence for leveraging customer data
- Strategic goal: "create a digital ecosystem where we engage more and more with the customers so that we become the prime bank for the customer"
IT CAPEX Trajectory (₹ Cr):
| FY22 | FY23 | FY24 | FY25 (Plan) | FY26 (Capital Budget) |
|---|---|---|---|---|
| ~500 | ~650 | ~1,150 | ~1,400 | ~1,600 [59] |
Digital Platform Architecture [Q3 FY26] [141]: Omni-channel Digital Business Platform with multiple channels — Assisted Portal, Retail Mobile Banking App, Business App — all on single platform. New Q3 FY26 launches include Tarun Plus, Re-KYC, Bulk Payments, QR Code generation, Payment Links, mPOS. Fintech-powered digital valuation and title search tools integrated [141].
Certifications: ISO 27701:2019 — first financial institution in India for privacy information management [99]. PCI DSS certification — 2nd PSB after SBI [115]. Global Fintech Festival Award 2024 — Excellence in Cyber Security [140]. Infosys Finacle Innovation Awards 2024 — Platinum in 4 categories [140].
Collection & Field Infrastructure [FY25]
| Channel | Description |
|---|---|
| Ecosystem Banking Vertical | GM-level officer with ~1,600 staff for CASA mobilization [23] |
| Union LEAP | 1,250 branch-based RMs in metro/urban areas [68] |
| UBI Services Ltd. | 4,500+ staff across 18 ZOs / 134 ROs [45][125] |
| Wealth Relationship Managers | Dedicated WRMs for HNIs; SP-certified staff 18,131 [33] |
| Treasury Relationship Group | Driving FX business from existing & new customers; white-label screens for FX volume [142] |
| CRM Edge (ZOHO) | Cross-sell/up-sell, 360° view, leads from all channels [104][136] |
| Call Centre / DCC | 11 languages; 24/7 digital contact centre evolving into sales engine [71][136] |
| Recovery Infrastructure | SARFAESI, DRT, IBC/NCLT, Lok Adalat, 3 SAMBs + 28 ARBs; BCs as recovery agents for <₹10L NPAs [70][142] |
Government Scheme Distribution — Multi-Year Trend
| Scheme | FY25 | Q3 FY26 |
|---|---|---|
| PMJDY Accounts (Cr) / Balance (₹ Cr) | 3.21 / 13,266 [20] | 3.37 / 14,498 [70] |
| PMMY (FY cumulative) | 7,10,680 A/Cs, ₹18,649 Cr [86] | — |
| PMSVANidhi (cumulative) | 9,67,200 A/Cs, ₹1,428 Cr [105] | 10.69 lakh, ₹1,688 Cr [79] |
| PMJJBY (new, annual) | 15.81 lakh [50] | — |
| PMSBY (new, annual) | 78.19 lakh [50] | — |
| Women Beneficiaries | ₹1,39,406 Cr (+7.8%) [83] | — |
| SHG Outstanding | — | 5,09,725 SHGs, ₹33,453 Cr [79] |
6. Customer Profile
Customer Scale & Segmentation
| Metric | Value | Period |
|---|---|---|
| Customer Base | 218+ million (21.8 Cr+) | Q1 FY24 [30] |
| Products per Customer | 2.24 → 2.32 | Q1 FY24 → H1 FY24 [30][10] |
| Total Business (Deposits + Advances) | ₹22.93 Trillion | FY25 [140] |
| Domestic vs Overseas (% of Advances) | ~96-97% Domestic, ~3-4% Overseas | [143] |
| CASA Accounts Added [FY25] | 34.80 lakh [87] | FY25 |
Customer categories [74]: (1) Individuals and Non-Corporate Entities; (2) Corporate and Business Entities; (3) Financial Institutions and Professionals.
Advances Mix by Customer Type [FY25]
| Segment | Outstanding (₹ Cr) | % of Dom. Adv. | Internal Target |
|---|---|---|---|
| Retail | 2,16,777 [143] | 22.92% [143] | — |
| Agriculture | 1,78,479 [143] | 18.87% [143] | — |
| MSME | 1,36,423 [143] | 14.42% [143] | — |
| RAM (Sub-total) | 5,31,679 [143] | ~56.2% | 55% → 58% [24][90] |
| Corporate & Others | 4,51,215 [143] | ~43.8% | 45% → 42% [24] |
| Total | 9,82,894 [143] | 100% |
Management target: "retail to corporate ratio of 55-45%" [130].
Customer Concentration [FY25 vs FY24]
| Metric | FY25 | FY24 |
|---|---|---|
| Top 20 borrowers — Advances (₹ Cr) | 1,55,013 | 1,37,765 [127] |
| Top 20 borrowers — % of Total Advances | 11.75% | 11.59% [127] |
| Top 20 borrowers — Total Exposure (₹ Cr) | 1,57,810 | 1,39,679 [127] |
| Top 20 NPA accounts — Exposure (₹ Cr) | 7,691 | 6,079 [127] |
| Top 20 NPA accounts — % of Gross NPAs | 21.76% | 13.38% [127] |
| SBL/GBL limit breach | Nil | Nil [127] |
Top 20 borrower concentration is moderate at ~11.8% and stable. However, top 20 NPA accounts' share of gross NPAs nearly doubled from 13.38% to 21.76%, indicating NPA concentration risk even as absolute NPAs decline.
NPA by Sector [FY25 vs FY24]
| Sector | FY25 Outstanding (₹ Cr) | FY25 GNPA (%) | FY24 GNPA (%) | Direction |
|---|---|---|---|---|
| Priority Sector | 3,36,485 | 6.14 | 8.31 | ↓ Improving |
| — Agriculture | 1,68,978 | 8.23 | 8.68 | ↓ |
| Non-Priority Sector | 6,46,409 | 2.27 | 2.63 | ↓ |
| — Services (non-priority) | 2,86,941 | 1.65 | 0.88 | ↑ Deteriorating |
| Total | 9,82,894 | 3.60 | 4.76 | ↓ |
Source: [75]. Key concern: Non-priority services GNPA nearly doubled from 0.88% to 1.65%, likely reflecting NBFC/corporate services stress.
NPA Recovery [FY25] [142]
| Recovery Component | ₹ Cr |
|---|---|
| Cash Recovery | 4,926 |
| Dummy Ledger Recovery | 2,497 |
| Recovery in Written-Off Accounts | 4,311 |
| Gross Cash Recovery | 11,735 |
| Upgradation | 3,263 |
| Gross Cash Recovery + Upgradation | 14,995 |
Slippages ₹12,073 Cr [24] against recoveries/upgradations of ₹14,995 Cr — net positive NPA movement.
Asset Quality — Extended Historical Trend
| Metric | Mar-19 | Mar-22 | FY23 | FY24 | FY25 | 9M FY26 |
|---|---|---|---|---|---|---|
| GNPA (%) | 15.00 [80] | 11.11 [80] | 7.53 [57] | 4.76 [62] | 3.60 [62][139] | 3.29 [22] |
| NNPA (%) | 6.90 [80] | 3.68 [80] | 1.70 [57] | 1.03 [62] | 0.63 [62] | 0.55 [22] |
| PCR (%) | 66.24 [80] | 83.61 [80] | 90.34 [57] | 92.69 [62] | 94.61 [62] | 95.13 [22] |
| GNPA (₹ Cr) | — | ~79,587 [57] | 60,987 [57] | 43,098 [142] | 35,350 [142] | — |
Remarkable turnaround: GNPA declined from 15.00% (Mar-19) to 3.60% (Mar-25) — an 1,140 bps improvement. PCR improved from 66.24% to 94.61%. This represents one of the most significant asset quality turnarounds in Indian PSB history.
Priority Sector Compliance [FY25]
| Category | FY25 (% ANBC) | Regulatory Target | Status |
|---|---|---|---|
| Total Priority Sector | 44.31% [83][139] | 40% | ✓ Met |
| Agriculture | 18.92% [83] | 18% | ✓ Met |
| Small & Marginal Farmers | 8.68% [83] | 10% | ✗ Miss |
| Micro Enterprises | 8.92% [83] | 7.50% | ✓ Met |
| Weaker Section | 9.29% [88] | 12% | ✗ Miss |
Two sub-target misses bridged via PSLC sales of ₹50,000 Cr in SMF category [108].
Banking / NBFC Sector-Specific Metrics
Capital Adequacy — Multi-Year Trend
| Metric (%) | Mar-22 | FY23 | FY24 | FY25 | Dec-25 |
|---|---|---|---|---|---|
| CRAR | 14.52 [80] | 16.04 [57] | 16.97 [1] | 18.02 [62] | — |
| CET-1 | — | 12.36 [57] | 13.65 [1] | 15.00 [62] | 13.94 [137] |
| Tier-1 | — | 13.91 [57] | 15.00 [1] | 16.24 [1] | 15.06 [137] |
CET-1 and Tier-1 "continued to improve" to 13.94% and 15.06% respectively as of Dec-25, vs 13.59% and 14.89% as of Dec-24 [137]. Capital profile further supported by ₹8,000 Cr QIP in FY24 [137]. Annualised RoNW of 15.64% in 9M FY26 [137] provides strong internal accrual capacity. Board-approved FY26 capital raise plan: ₹10,000 Cr (Equity ₹6,000 Cr + AT-1 ₹2,000 Cr + Tier-2 ₹2,000 Cr) [105].
Competitive Distribution Comparison
| Parameter | Union Bank of India | PSB Average/Benchmark | Source |
|---|---|---|---|
| CASA Ratio (Dec-25) | ~34% | ~36% (PSB avg) | [137] |
| Cost of Funds (9M FY26) | 5.37% | 5.06% (PSB avg) | [137] |
| Cost of Funds (Q1 FY26) | 5.50% | 5.17% (PSB avg) | [131] |
| Cost of Funds (FY23) | 4.26% | 4.04% (PSB avg) | [128] |
| Retail LCR Deposit Base (Dec-25) | ~63% | Comparable to large PSBs | [137] |
| Credit-to-Deposit Ratio (Dec-25) | 81% | — | [137] |
| Branches (Dec-25) | 8,671 | — | [137] |
| Market Share — Advances (Dec-25) | 5.0% | — | [137] |
| Market Share — Deposits (Dec-25) | 5.1% | — | [137] |
| GNPA (Mar-25) | 3.60% | — | [62] |
| RoA (9M FY26) | 1.20% | — | [137] |
| Operating Profit / ATA (9M FY26) | 1.68% | — | [137] |
ICRA assessment (Mar 2026) [137]: "Given the comfortable credit-deposit ratio (81% as on December 31, 2025)... its low-cost CASA deposits stood at around 34%, remained below the PSB average (about 36%)... the bank's overall cost of funds was higher at 5.37% compared to the PSB average of 5.06% in 9M FY2026. Nonetheless, given its widespread network, steady core deposit base and robust retail franchise, ICRA expects Union Bank to maintain its strong liabilities profile."
The cost-of-funds gap vs PSB average widened from 22 bps (FY23) to ~31-33 bps (9M FY26) — a ~50% widening of the structural disadvantage. On ~₹12+ Tr deposits, this ~31 bps gap represents approximately ₹3,700-4,000 Cr of excess annual interest cost vs an average PSB — a persistent drag on NIM competitiveness that the bank's CASA ratio trajectory (declining from 36.5% to 33.5%) shows no signs of reversing.
Key Data Gaps
- Channel-wise revenue split (branch vs digital vs BC) beyond the digital sub-segment reporting (~₹964 Cr / 0.7% of total revenue) is not available.
- Detailed peer-by-peer comparison — while CASA and cost-of-funds benchmarks are available via ICRA, granular named-peer comparisons of branch/ATM/digital metrics are absent.
- Credit card portfolio outstanding — referenced but specific outstanding figures not extracted.
- Digital transaction absolute volumes (UPI/IMPS counts) — growth rates cited (UPI +36%) but absolute numbers missing.
- Private NBFC exposure doubled to ₹78,891 Cr (Dec-25) — credit quality for this sub-portfolio is not separately disclosed [14].
- Retail "Others" category — grew explosively (₹41,958 Cr to ₹67,426 Cr in FY25 per [143]; ₹79,260 Cr by Dec-25 per [113]) without adequate composition disclosure.
- Non-priority services GNPA nearly doubled from 0.88% to 1.65% [75] — root cause and composition need investigation.
- FY25 Priority Sector sub-targets missed — Small & Marginal Farmers (8.68% vs 10%) and Weaker Section (9.29% vs 12%) [83][88].
- 56 digital journeys live (Q3 FY26) [141] vs 350+ target — only ~16% of stated aspiration achieved; timeline and roadmap for balance not disclosed.
- Wealth management income discrepancy resolved: ₹578.91 Cr per Annual Report [142] is authoritative (vs ₹567.75 Cr per earlier extraction [56]).