By THE NEWSMAN OF INDIA.COM| Union Bank of India’s latest quarterly performance reflects more than just favourable numbers—it signals a carefully executed shift in strategy aimed at building sustainable profitability. For the quarter ended December 2025, the public sector lender delivered a strong financial showing, underpinned by sharper margins, disciplined cost management and a conscious reshaping of its balance sheet.

State-owned Union Bank of India on Wednesday reported a 9 % year-on-year rise in net profit to Rs 5,017 crore for the quarter ended December 31, 2025, aided by a decline in provisions.

Net interest income — the difference between interest earned and interest expended — grew just 1 per cent to Rs 9,328 crore from Rs 9,241 crore in the same quarter of FY25.

Non-interest income rose 2.82 percent to Rs 4,541 crore during the quarter. Net interest margin for the period was 2.76 per cent, compared with 2.91 percent a year ago.

Provisions and contingencies fell nearly 80 percent to Rs 322.23 crore in the December quarter of FY26 from Rs 1,599.05 crore a year earlier. Provisions for non-performing assets declined 84 per cent to Rs 235 crore

Union Bank of India MD and CEO , Asheesh Pandey, said the decline in provisioning was due to lower slippages. Slippages fell to Rs 1,853 crore in the December quarter from Rs 2,151 crore in the September quarter.

Fresh slippages during the quarter were Rs 1,660 crore, compared with Rs 1,820 crore in the same period last year.

Pandey said the bank has identified a gap of Rs 4,200 crore between its existing provisions and those required under the expected credit loss-based framework, which will be implemented in phases from April 1, 2027.

Asset quality improved during the quarter, with gross non-performing assets declining by 79 basis points year-on-year to 3.06 per cent, while net non-performing assets fell by 31 basis points to 0.51 per cent as of December 31, 2025.