Union Bank Q4 FY26 results: Profit rises, NII dips, ₹5 dividend

Why the Q4 print mattered for Union Bank shares

Union Bank of India’s March-quarter results for FY26 delivered a mixed set of signals for investors. Profit rose year-on-year, and asset quality improved with lower gross and net NPAs. But the operating picture was weighed down by weaker core income and a sharp increase in provisions.

The market reaction reflected that balance. The stock fell sharply after the results and extended losses into the following session, as brokerages flagged margin pressure and higher credit costs.

Q4 FY26 headline numbers disclosed by the bank

Union Bank of India reported net profit of ₹5,315.76 crore for Q4 FY26, compared with ₹4,984.92 crore in the year-ago quarter, as per its regulatory filing. Separately, another results brief in the provided data pegged Q4 net profit at ₹5,316 crore.

Core income trends were softer. The bank’s net interest income (NII) was reported to be down 1.1% year-on-year in one of the Q4 result summaries. Margins also contracted, with net interest margin (NIM) reported at 2.64% in Q4 FY26 versus 2.97% in the year-ago period.

Provisions jumped nearly threefold, lifting credit-cost concerns

Alongside weaker net interest income, a major swing factor in the quarter was provisioning. The data provided says provisions surged nearly threefold in Q4 FY26.

Brokerage commentary cited in the provided text pointed to elevated credit costs and the creation of standard asset provisions as key reasons for caution. Even where earnings were supported by stronger other income, the provisioning spike and margin pressure were highlighted as the main negatives.

Asset quality improved as GNPA and NNPA moved lower

Despite pressure from provisions and margins, Union Bank reported continued improvement in asset quality metrics.

• Gross NPA (GNPA) ratio declined to 2.82% in Q4 FY26, from 3.06% in the previous quarter and 3.60% in Q4 FY25.
• Net NPA (NNPA) ratio eased to 0.48% in Q4 FY26, compared with 0.51% in the December quarter of FY26 and 0.63% in Q4 FY25.

The fall in GNPA and NNPA provided support to the broader narrative that slippages have been easing, even as the bank chose to build higher provisions.

Dividend announced: ₹5 per share, subject to approvals

Union Bank’s board recommended a final dividend of ₹5 per equity share (face value ₹10 each) for FY26.

The bank stated that the dividend payment is subject to necessary statutory approvals and shareholder approval at the ensuing 24th Annual General Meeting (AGM). It also said the AGM date, book closure, and other related timelines will be intimated in due course. In a separate snippet, the record date for dividend eligibility was described as yet to be announced.

Stock reaction: sharp fall after results, then further weakness

The provided data indicates a strong negative market response immediately after the Q4 announcement. One report said the stock fell over 8% to hit an intraday low of ₹178 on the NSE on Thursday following the results.

Another update said shares dropped another 2% on Friday, extending losses to 10% over two days after the Q4FY26 results failed to excite brokerages.

End-of-day snapshots included:

• BSE (24-04-2026 09:08): ₹179.65, change 0.00 (0.00%), volume 30,033, 52-week range ₹112.70 - ₹205.45
• NSE (24-04-2026 09:07): ₹179.50, change -0.22 (-0.12%), volume 273,375

What brokerages said: Neutral stance and limited upside

Motilal Oswal maintained a ‘Neutral’ rating, with a target price of ₹180 per share. The note cited in the supplied text pointed to NIM contraction weighing on performance, offset partly by stronger other income, while credit costs were described as elevated.

The commentary also said loan growth improved after a subdued first half, and deposit growth rebounded in a seasonally strong quarter, while the bank remained cautious on bulk deposits.

Context from earlier quarters and recent operational updates

For Q3FY26 (December 2025 quarter), the bank reported net profit of ₹5,017 crore and NII of ₹9,328 crore, with NIM at 2.76% versus 2.91% a year earlier, as per the figures included in the supplied material. Another results headline in the provided text mentioned consolidated Q3 net profit of ₹5,073 crore.

Outside results, the bank disclosed multiple investor engagement updates and corporate actions. These included a planned participation in Kotak Securities’ investor conference in Mumbai on February 26, 2026, and an investor and analyst meeting with Kuwait Investment Office in London on February 20, 2026, with the bank stating it would only refer to publicly available information and not share unpublished price-sensitive information.

Other developments around Union Bank and related deals

The supplied material also referenced:

• Union Bank and Yes Bank set to enter Nifty Bank as the index expands to 14 stocks, with rebalancing occurring in tranches from December to March, following a Sebi-mandated change.
• IndiaFirst Life’s proposed stake sale to BNP Paribas Cardif facing delays after Union Bank exited its corporate agency tie-up with IndiaFirst Life, with discussions continuing on renewal.
• Banks seeking a competing bid for ₹729 crore Sahara Star Hotel debt, with Union Bank leading the process. A prior offer by JC Flowers ARC of ₹279 crore and a minimum bid target of ₹293 crore were cited, with an auction expected soon.

Key numbers at a glance

What investors will track next

Near-term focus is likely to remain on the bank’s margin trajectory and whether credit costs normalise after the quarter’s sharp provisioning jump. Investors will also watch for the AGM timeline and the dividend-related dates that the bank said it will announce in due course.

Index-related flows could also stay in focus given the referenced Nifty Bank expansion and the staged rebalancing plan. Separately, updates on bancassurance arrangements connected to IndiaFirst Life, and progress on large debt resolution processes such as Sahara Star, remain relevant headline risks.

Conclusion

Union Bank’s Q4 FY26 results combined higher profit and improved asset quality with a weaker core-income profile and a sharp rise in provisions. The bank has proposed a ₹5 per share dividend, while the market has reacted cautiously as brokerages point to margin pressure and elevated credit costs. The next set of confirmed triggers will be the bank’s AGM and dividend schedule disclosures, along with any further regulatory and business updates flagged through exchange filings.