Union Bank Faces Pressure Amid Decline in Net Interest Income

The quarterly financial results of public sector lender Union Bank of India (UBI) for March have fallen short of market expectations. During this period, the bank reported a consolidated revenue of ₹31,851.15 crore and a net profit of ₹5,503 crore. Although net profit rose by 9.8% compared to the same period last year, the growth stood at 6.6% excluding subsidiary profits, reaching ₹5,316 crore.

However, the bank’s Net Interest Income (NII) declined by 1.14% to ₹9,406 crore during the same period. As a result, the Net Interest Margin (NIM) also fell from 2.87% to 2.64%. Loan growth remained below 10%. Despite these challenges, the board of directors has recommended a dividend of ₹5 per share to shareholders.

Looking ahead, UBI Managing Director and CEO Ashish Pandey stated that corporate lending is expected to reach ₹55,000 crore in the current financial year (2026–27). He added that loans worth ₹30,000 crore have already been approved so far.