Union Bank of India closed FY25 with strong profitability, improved asset quality, and higher capital buffers, alongside steady business growth as of 31 March 2025.
Profitability
- Net Profit rose about 32% year-on-year in FY25, reflecting stronger core performance and lower provisions’ drag.
- Non-interest income grew about 23% year-on-year, supporting overall earnings momentum in FY25.
- Return on Assets improved to 1.26% and Return on Equity to 17.20% for FY25, indicating better efficiency and capital productivity.
Business growth
- Total Business reached ₹22,92,644 crore, up 7.82% year-on-year by 31 March 2025, driven by advances and deposits growth.
- Gross Advances increased 8.62% year-on-year, while Total Deposits grew 7.22% year-on-year as of 31 March 2025.
- Global deposits stood at ₹13,09,750 crore as of 31 March 2025, underscoring a stable liability franchise.
RAM segment momentum
- RAM portfolio (Retail, Agriculture, MSME) expanded 10.17% year-on-year in FY25, led by 22.14% growth in Retail and 12.50% in MSME.
- RAM advances constituted 56.20% of domestic advances, highlighting continued strategic retail and MSME focus.
Asset quality
- Gross NPA ratio declined by 116 bps year-on-year to 3.60% as of 31 March 2025, reflecting improved recoveries and underwriting.
- Net NPA ratio fell by 40 bps year-on-year to 0.63% as of 31 March 2025, indicating strong loss coverage and cleaner book.
Capital and coverage
- CRAR improved to 18.02% as of 31 March 2025 from 16.97% a year ago, providing ample growth headroom.
- CET-1 ratio strengthened to 14.98% as of 31 March 2025 from 13.65% a year earlier, reinforcing core capital quality.
Dividend and shareholder returns
- Board recommended a dividend of ₹4.75 per equity share (47.5% of face value ₹10) for FY25, subject to approvals.
- Enhanced profitability and capital ratios underpinned improved return metrics through FY25.
Additional data points for context
- External trackers noted NIM moderation alongside margin-resilient profit growth and lower tax expense, with PAT up ~31% year-on-year in FY25.
- Public result digests corroborate Total Business at ₹22.93 lakh crore and the liability strength as of 31 March 2025.
Quick snapshot (as of 31 Mar 2025)
- Total Business: ₹22,92,644 crore; Deposits: ₹13,09,750 crore; Gross Advances: up 8.62% YoY.
- GNPA/NNPA: 3.60% / 0.63%; CRAR/CET-1: 18.02% / 14.98%; RoA/RoE: 1.26% / 17.20%.
What to watch ahead
- Sustaining retail-led growth while preserving margin amid deposit cost pressures will be key to NIM trajectory in FY26.
- Continued asset quality gains and capital conservation provide cushion for growth in RAM and select corporate segments.
