Union Bank Q4 results show mixed performance with net profit rising 6.6% year-on-year to Rs 5,316 crore, though net interest income declined 1.1% to Rs 9,406 crore. The bank's provisions surged nearly three-fold to Rs 1,055 crore from Rs 322 crore, signaling increased caution on credit risk. Asset quality improved notably with gross NPA falling to 2.82% from 3.60% year-on-year, while net NPA eased to 0.48%. Advances grew 10% annually to Rs 10.78 lakh crore, demonstrating strong lending momentum. The board recommended a Rs 5 dividend per share for FY2025-26. Markets reacted negatively, with Union Bank shares falling 7.2% intraday, though they remain up 28% over six months. The mixed results reflect ongoing challenges in net interest margins amid provisions buildup, offset by improving asset quality metrics.
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