Union Bank of India (Banks - PSU) — fundamental analysis, earnings data, and key metrics. PE: 7.6. ROE: 17.0%. This stock is not currently in the Nifty 500 momentum outperformers list.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Standard Asset Provision: ₹176 Cr vs ₹882 Cr
Impact: ₹706 Cr provision saving
“provision on standard asset has come down to INR 176 crore as compared to INR 882 crore in the last quarter.”
What: RAM Sector Growth: 11.5% to 21.67%
“growth in the RAM sector certainly increased by 11.50%, 21.67% growth in Retail and 19.75% in Agri.”
What: Corporate Sanction Pipeline: ₹24,000 - ₹26,000 Cr
“in the Corporate only, I am saying, around INR 24,000 crores to INR 26,000 crores is sanctioned and disbursement pending.”
What: Bulk Deposit Shedding: ₹40,000 Cr
“we have shed off INR 40,000 crores of our bulk deposit... reduction in the cost of funds and deposit is really very steep.”
What: New MD/CEO Tenure: 3rd call
“we are meeting the first time in this calendar year, and the third time in the financial year.”
What: Net Profit of ₹5,017 Cr
“our net profit has gone up substantially, and the main reason is that the provision on standard asset has come down to INR 176 crore.”
What: 6.5% to 6.7% → 7.4%
“Previously, it was 6.5 to 6.7 and other things, and now we expect around 7.4 in this year.”
Earnings deceleration risks from management commentary
Trigger: New RBI draft guidelines on provisioning requirements.
Impact: PAT impact: ₹4,300 Cr (one-time)
Management view: The bank already holds 95% PCR and excess standard asset provisions to bridge the gap.
Monitor: regulatory
Trigger: Mandatory industry norms under the new labor code.
Impact: PAT impact: ₹15 Cr
Management view: Management believes the impact is immaterial for a bank of their size.
Monitor: labor
Trigger: Market competition and systemic procedures in gold lending.
Management view: Strengthening systemic procedures to take the portfolio forward.
Monitor: commodity
Key quotes from recent conference calls
“certainly we would like to have around 9% to 10% of the growth on both the asset and liability side. [Previous Loan Growth guidance]”
“on the basis of CASA, the team which we are looking at to increase by 1%, 1.5% somewhere going forward. [Previous CASA Ratio guidance]”
“under project Muskan, we have currently identified around 300 odd processes, which we are trying to simplify. [Initiative: Project Muskaan]”
“we have created a different structure... ecosystem banking, which is headed by a very senior official at the general manager level. [Initiative: Ecosystem Banking]”
Headline numbers from the latest earnings call
Revenue
₹26,443 Cr
Why: Interest income was supported by extensive work in the RAM sector and corporate book despite rate cuts.
Management focused on higher-yielding assets to offset the impact of 125 basis points in repo cuts.
PAT
₹5,017 Cr
Why: Profit growth was driven by reduced provisions on standard assets and improved yields from churning the corporate portfolio.
The bank achieved a record quarterly profit, crossing the ₹5,000 Cr milestone for the first time.
Other Highlights
• Gross advances increased by 7.13% sequentially.
• Total deposits grew by 3.36% as the bank shed high-cost bulk deposits.
• Return on Assets reached 1.35%, the highest level for the bank.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Net Interest Margin
2.76%
Why: Defended through portfolio churning and shedding high-cost bulk deposits.
Provision Coverage Ratio
95%
Why: Maintained at a high level to ensure a well-provisioned balance sheet.
CASA Ratio Increase
140 bps
Why: Focus on ecosystem banking and digital liability opening.
Standard Asset Provisioning
₹176 Cr
Why: Reduced due to low slippages and adequate existing buffers.
Quarterly Slippages
₹1,800 Cr
Why: Contained through better collection efficiency and early warning signals.
Domestic CD Ratio
81%
Why: Maintained below 81% to ensure liquidity efficiency.
SMA-2 Stock (>₹5 Cr)
₹4,285 Cr
Why: Lowest level achieved through strengthened credit collection systems.
Return on Assets
1.35%
Why: Driven by record net profits and optimized asset utilization.
Forward-looking targets from management for FY26
Revenue Growth Target
2.76%
OPM Guidance
2.76%
Capex Plan
₹1600 Cr
NIM to be defended at 2.76%
REAFFIRMED
₹1,600 Cr
Technology budget for infrastructure, cybersecurity, and digital banking platform.
REAFFIRMED
Guidance Changes
GDP Growth Expectation: 6.5% to 6.7% → 7.4%
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
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The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
