Union Bank’s Retail Engine Roars: Deposits Inch Up, Loans Leap 25.6% in Q1 FY26

Union Bank of India has posted a solid quarter for the quarter ended June 30, 2025, with a satisfactory growth in retail lending and stable growth in deposits, indicating its retail-oriented strategy in the face of competitive banking.

Key Highlights:

Home-grown retail expansion surged 25.6% year-on-year to ₹2.28 lakh crore from ₹1.82 lakh crore in Q1 FY25.

Domestic deposits increased 3.62% year-over-year to ₹12.39 lakh crore, indicating prudent management of liabilities despite the scarcity of liquidity.

The bank's aggregate business stood at ₹22.14 lakh crore, up 5% from year-earlier level.

Retail Momentum:

The Retail, Agriculture, and MSME portfolio of the RAM rose by 10.31% year-on-year to ₹5.44 lakh crore led by retail lending.

The retail expansion in advance was fueled by robust demand within home loan, personal credit, and auto finance segments.

Profitability and Asset Quality

Net profit rose 51% from last year to ₹4,984.9 crore driven by higher other income and improved operating efficiency.

Net interest income rose marginally to ₹9,514 crore, and gross NPA rose to 3.6% from 3.85% in the previous quarter.

Net NPA was 0.82%, a reflection of prudent credit underwriting and recoveries.

Market Snapshot:

Union Bank shares closed at ₹150.40 on July 8, down 1.12% on the BSE.

Investors are looking forward to the bank's next capital raise and digital push as it builds further its retail franchise.

Sources: CNBC-TV18, Business Upturn, Economic Times, Reuters, Union Bank of India Regulatory Filings