Union Bank Q4 Results FY26: Profit up 6.6% to ₹5,316cr

Key takeaway from the quarter

Union Bank of India reported a year-on-year rise in profit for Q4 FY26, supported by lower provisions and operating expenses even as net interest margin moderated. The state-owned lender posted net profit of ₹5,316 crore, up 6.6% from ₹4,985 crore a year earlier. Sequentially, profit rose 6% from ₹5,017 crore in Q3 FY26. The numbers point to steady operating performance, with cost and provisioning discipline playing a larger role than core interest income expansion.

Profit growth led by lower provisions and costs

The bank’s provisions declined 2.76% year-on-year to ₹2,640 crore in Q4 FY26 from ₹2,715 crore in Q4 FY25. However, provisions rose 37.1% sequentially from ₹1,925 crore in Q3 FY26. The bank attributed this jump mainly to a one-time increase of ₹700 crore in standard asset provision.

Operating expenses also helped support profitability. Operating expenses declined 6.9% year-on-year and 0.9% sequentially to ₹6,863 crore in Q4 FY26. The combination of lower operating expenses and a marginal reduction in year-on-year provisioning cushioned the impact of slightly weaker core income indicators.

Net interest income shows small shifts

Net interest income (NII) for the quarter came in at ₹9,406 crore. It was marginally lower by 1.1% year-on-year but up 0.8% sequentially. Interest earned declined 4.5% year-on-year to ₹26,439 crore, while interest expenses fell 6.3% to ₹17,033 crore. The lower interest expense helped protect NII even as interest income softened.

For investors tracking profitability drivers, the quarter showed that cost of funds and operating expenses moved favourably, while topline interest income did not grow year-on-year.

Margin moderates from both YoY and QoQ levels

Union Bank’s net interest margin (NIM) moderated to 2.64% in Q4 FY26. This compared with 2.76% in the previous quarter and 2.87% in Q4 FY25. The margin movement is important because it influences the bank’s ability to compound earnings from its loan book without relying on one-offs.

Other income: down YoY, up sharply QoQ

Other income declined 2.6% year-on-year to ₹5,412 crore in Q4, but rose 19.2% sequentially. Treasury income fell sharply to ₹636 crore in Q4 FY26, down 61.4% year-on-year and 29.4% sequentially.

The bank also referenced an adjustment while discussing other income, noting that “adjusting for that, other income declined by about 1.9 per cent year-on-year”. With treasury income lower, the quarter’s non-interest income mix appeared less supportive on a year-on-year basis, even though sequential improvement was strong.

Operating profit improves despite mixed income lines

Operating profit before provisions and contingencies increased 3.3% year-on-year to ₹7,955 crore and rose 14.6% sequentially. This suggests the bank’s pre-provision profitability improved quarter-on-quarter, helped by the sequential rise in other income and controlled operating expenses.

Loan growth steady; deposits flat YoY

On the business side, total advances grew 9.7% year-on-year to ₹10.79 trillion, and 6.1% sequentially, indicating continued credit demand. In normalized terms, advances were ₹10,79,000 crore.

Deposits were largely flat year-on-year at ₹13.07 trillion (₹13,07,000 crore), though they rose 6.9% quarter-on-quarter. The contrast between advances growth and flat year-on-year deposits is a key monitorable for funding strategy and deposit mobilisation in coming quarters.

Snapshot table: Union Bank of India Q4 FY26

UCO Bank Q4 FY26: revenue up, PAT shown lower YoY

A separate Q4 FY26 results summary for UCO Bank (dated 01 April 2026) reported a 16.5% year-on-year rise in total income to ₹8,136.79 crore from ₹6,984.61 crore in Q4 FY25. Total expenses rose 12.7% year-on-year to ₹6,438.02 crore from ₹5,711.74 crore.

Provisions and contingencies increased 41.8% year-on-year to ₹662.63 crore from ₹467.36 crore. Profit before tax (PBT) rose 28.6% year-on-year to ₹1,036.14 crore from ₹805.51 crore, while tax increased 37.2% to ₹383.71 crore from ₹279.74 crore.

Profit after tax (PAT) was shown at ₹665.72 crore in Q4 FY26 versus ₹2,301.15 crore in Q4 FY25, a 71.1% decline. The same summary noted that the divergence between PBT growth and PAT decline could be due to extraordinary items or non-recurring expenses impacting net profit. Earnings per share (EPS) for Q4 FY26 stood at ₹0.56 versus ₹0.45 in Q4 FY25.

Snapshot table: UCO Bank Q4 FY26 vs Q4 FY25

Market impact: what the numbers signal

Union Bank’s Q4 FY26 results show profit growth supported by costs and provisioning, while NIM softened from both the previous quarter and the year-ago period. The sequential spike in provisions, driven by a one-time ₹700 crore standard asset provision, is a key detail for quarter-on-quarter comparability. Credit growth remained healthy at 9.7% year-on-year, while deposits were flat year-on-year, a combination that investors often watch closely for margin and liquidity implications.

For UCO Bank, the reported year-on-year rise in total income and PBT contrasts with a sharp decline in PAT as presented in the summary data. The summary itself flags extraordinary or non-recurring items as a possible reason, but no specific items were detailed in the provided figures.

Conclusion

Union Bank of India closed Q4 FY26 with higher profit on the back of lower operating expenses and slightly lower year-on-year provisions, even as NIM moderated to 2.64%. Credit growth stayed steady, while deposits were flat year-on-year but improved sequentially. Investors will likely track how margins and funding trends evolve in subsequent quarters, alongside provisioning patterns after the one-time standard asset provision increase.