Asheesh Pandey, MD and CEO of Union Bank
Union Bank of India on Thursday reported a 10 percent year-on-year decline in net profit for the quarter ended September at ₹4,249 crore, due to lower overall revenues and recoveries on written-off loans.
The bank’s net interest income (NII) fell 3 per cent y-o-y to ₹8,812 crore, while other income – including fees from third-party services, treasury income and recoveries from written-off accounts – fell 6 per cent y-o-y to ₹4,996 crore. Recoveries fell 36 percent year-on-year to ₹913 crore in the second quarter. Net interest margin (NIM), a key indicator of profitability, fell to 2.67 percent in the second quarter from 2.76 percent in the last quarter.
In a recent report on the merger of Bank of India and Union Bank, Asheesh Pandey, the latter’s newly appointed managing director, said things are evolving, without specifically denying the media reports. He said the latest round of public sector bank mergers has been successful and even the One State, One Regional Rural Bank (RRB) policy has helped customers of RRBs.
“…Things are evolving, it is a dynamic market. The market decides what will happen…,” Pandey said.
Union Bank’s total advances rose 5 per cent year-on-year to ₹9.75 lakh crore in the second quarter, while deposits rose 2 per cent to ₹12.34 lakh crore. Retail, agricultural and SME loans made up 57 percent of the loan portfolio, with corporate loans making up the rest. The bank aims to grow its total advances by 8 to 10 percent in the current fiscal, Pandey said. It has launched innovative products to grow both retail loans and savings account deposits.
Asset quality improved, with the slippage ratio falling from 0.99 percent in the last quarter to 0.91 percent in the second quarter, while credit costs fell to 22 basis points (bps) from 47 basis points in the last quarter. Total gross and net non-performing asset ratios stood at 3.29 percent and 0.55 percent in the second quarter, down from 3.52 percent and 0.62 percent, respectively, in the first quarter. Provisions accordingly fell 24 per cent year-on-year to ₹2,565 crore, helping the bottom line. The bank’s solvency ratio stood at 17.07 percent at the end of September, while the common equity Tier I ratio stood at 14.37 percent.
Published on October 30, 2025
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