Union Bank Q4 net profit up 50.57% to Rs 4,984 cr on strong fee income

Union Bank of India posted a 50.57 per cent rise in Q4FY25 net profit to Rs 4,984 crore, aided by an 18.1 per cent growth in non-interest income and improved asset quality

Public sector lender Union Bank of India reported a 50.57 per cent year-on-year (YoY) rise in net profit to Rs 4,984 crore for the fourth quarter of FY25, driven by strong growth in non-interest income.

 

For the full financial year FY25, the bank posted a net profit of Rs 17,987 crore, registering a 30.73 per cent YoY increase.

 

The board has recommended a dividend of Rs 4.75 per share for FY25, subject to statutory and shareholder approval. On Thursday, Union Bank’s stock closed 2.57 per cent lower at Rs 115.45 on the BSE.

 

Net interest income (NII)—a key revenue stream—remained flat in Q4FY25 at Rs 9,514 crore, compared to the same period last year.

 

Non-interest income, which includes fees, commissions and treasury earnings, rose 18.1 per cent to Rs 5,559 crore in Q4FY25 from Rs 4,707 crore a year earlier.

 

Provisions for non-performing assets increased to Rs 1,675 crore in Q4FY25 from Rs 1,485 crore in Q4FY24.

 

Union Bank recorded 9.50 per cent YoY growth in advances, with total advances reaching Rs 9.53 trillion as of March 2025. Deposits grew 7.22 per cent YoY to Rs 13.09 trillion.

 

Asset quality continued to improve. Gross non-performing assets (NPAs) declined to 3.6 per cent from 4.76 per cent a year earlier, while net NPAs dropped to 0.63 per cent from 1.03 per cent in March 2024. The provision coverage ratio (PCR), including write-offs, stood at 94.61 per cent.

 

The bank’s capital adequacy ratio was 18.02 per cent, with the common equity tier I (CET-1) ratio at 14.98 per cent.