The bank reported slippages of Rs 1,853 crore at the end of the December quarter, down from Rs 2,151 crore in the September quarter.
Gross non-performing assets declined sequentially to 3.06% from 3.29%, while net NPAs improved to 0.51% from 0.55% in the previous quarter. In absolute terms, gross NPAs fell to Rs 31,121 crore from Rs 32,085 crore at the end of September, and net NPAs eased to Rs 5,102 crore from Rs 5,209 crore.
On a year-on-year basis, the bank said gross NPAs fell by 79 basis points and net NPAs by 31 basis points as of December 31, 2025.
For the third quarter ended December 31, 2025, Union Bank reported a net profit of Rs 5,017 crore, compared with Rs 4,604 crore a year earlier, according to a regulatory filing. Net interest income, its core income, rose 1% year-on-year to Rs 9,328 crore, from Rs 9,241 crore in the corresponding quarter last year.
The modest growth in NII reflected a slower expansion in deposits, even as advances continued to grow at a healthier pace.
Loan growth outpaces deposits
As of December 31, 2025, the bank’s total business stood at Rs 22,39,740 crore, up 5.04% from a year earlier. Gross advances rose 7.13% year-on-year, while global deposits increased 3.36% to Rs 12,22,856 crore.
The divergence between loan and deposit growth has been a broader theme across the banking sector, closely watched by investors as interest rates and liquidity conditions evolve.
Capital position remains strong
Union Bank also reported comfortable capital buffers. The capital-to-risk-weighted assets ratio stood at 16.49% at the end of December 2025, while the common equity tier-1 ratio improved to 13.94% from 13.59% a year earlier.
With improving asset quality, stable profitability and adequate capital, Union Bank of India has emerged as a key stock on investors’ buy lists within the public-sector banking space, interest that was reflected sharply in Wednesday’s rally.
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