Union Bank of India (UNIONBANK) investor relations material

Business overview and strategy

• Fifth largest public sector bank in India with over 8,700 branches and 168 million customers, offering a diversified suite of banking products across corporate, retail, agriculture, MSME, treasury, and international segments.

• Major digital transformation with 90%+ transactions through digital channels and significant digital loan sanctions.

• Strategic focus on expanding international presence, especially through the Dubai International Financial Centre branch, with recent unsecured notes issuance to fund growth.

• Government of India remains the majority shareholder post-amalgamation with Andhra Bank and Corporation Bank.

• Strong value creation model emphasizing financial, manufactured, intellectual, social, and natural capital, with a commitment to sustainable and inclusive growth.

Financial performance and capital adequacy

• Total deposits reached $135.6bn and total advances $115.8bn as of June 2026, with a market capitalization of $15.0bn.

• Net profit for FY26 was $1,975mn, with ROA at 1.25% and ROE at 15.86%.

• Gross NPA ratio improved to 2.65% and net NPA to 0.47% by June 2026, with provision coverage ratio at 95.05%.

• Capital adequacy ratio (CRAR) stood at 18.46% in June 2026, supported by strong domestic and international credit ratings (BBB/Stable by S&P, BBB-/Stable by Fitch).

• CASA ratio maintained above 35%, supporting a low-cost deposit base.

Asset quality and portfolio composition

• Advances portfolio is diversified, with 55.5% in RAM (Retail, Agriculture, MSME) segments and a strategic focus on these areas.

• Retail advances are led by home loans (43% of retail), while MSME and agriculture portfolios show robust growth.

• Sustained reduction in NPAs driven by focused recovery and lower slippages, with GNPA and NNPA ratios improving significantly over the past three years.