UNIONBANK
Large CapUnion Bank of India
Financial Services
Union Bank of India is a public sector bank with a pan-India presence, operating 8,697 branches and 8,656 ATMs. The Government of India holds a 74.76% stake. The bank focuses on retail, agriculture, and MSME (RAM) advances, alongside large corporate lending, and is undergoing digital transformation.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -4% YoY · PAT +10% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹26,676 Cr | -4.3% | -0.5% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹5,504 Cr | +9.8% | +8.5% |
| PAT margin | 20.6% | +265 bps | +171 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Union Bank of India reports Q4 FY26 Net Profit up 6.64% YoY to ₹5,316 Cr, driven by strong asset quality improvement with GNPA at 2.82% and NNPA at 0.48%. Global Advances grew 9.74% YoY, while NIM declined to 2.64%.
The bank demonstrates sustained credit growth, particularly in RAM segments, and significant improvement in asset quality with declining GNPA/NNPA and low credit costs. While NIM compression is a concern, robust capital adequacy and digital initiatives support the long-term thesis. Management's focus on operational efficiency and customer service is positive.
Advances Mix (Mar-26)
Latest issuer-disclosed distribution across 2 reported categories.
Retail Loans Growth
Retail advances grew 16.75% YoY and 3.07% QoQ to ₹2,53,083 Cr.
MSME Loans Growth
MSME advances grew 18.75% YoY and 3.72% QoQ to ₹1,62,007 Cr.
Digital Lending Journeys
Over ₹35,660 Cr business generated through 15+ digital lending journeys.
Digital CASA Accounts
₹1,500 Cr+ digital CASA accounts opened, including 7,00,183 Savings Accounts.
Branch Expansion
100 new branches added in FY25-26, with 200 planned for FY26-27.
Government Schemes
Active participation in schemes like PMSVANidhi, PM Vishwakarma, PMEGP, PM Mudra Yojana, and PM Surya Ghar Muft Bijali Yojana.
ESG Ratings
Received CARE 1+ ESG rating and Moody’s SQS2 (Very Good Sustainability Quality) for Sustainable Financial Framework.
Digital Transformation Initiatives
Project Muskaan for Bank-wide Business Process Transformation and CRM Edge for end-to-end complaint management.
Net Interest Margin (NIM) Compression
NIM declined by 23 bps YoY and 12 bps QoQ to 2.64% in Q4 FY26.
Treasury Income Volatility
Treasury income decreased by 61.36% YoY and 29.41% QoQ in Q4 FY26.
Increased Provisions QoQ
Provisions increased by 37.14% QoQ to ₹2,640 Cr in Q4 FY26, including an additional ₹700 Cr provision.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
For financial services, YoY comparison highlights underlying growth trends and asset quality improvements over a full business cycle, crucial for assessing long-term health. QoQ comparison is vital for tracking sequential momentum in disbursements, NIM, and immediate asset quality shifts, reflecting short-term operational performance.
Net Profit (Q4 FY26)
₹5,316 Cr, +6.64% YoY, +5.96% QoQ.
Operating Profit (Q4 FY26)
₹7,955 Cr, +3.31% YoY, +14.59% QoQ.
Net Interest Income (NII) (Q4 FY26)
₹9,406 Cr, -1.14% YoY, +0.84% QoQ.
Net Interest Margin (NIM) (Q4 FY26)
2.64%, -23 bps YoY, -12 bps QoQ.
Future-Ready Organization
Project Muskaan is a bank-wide Business Process Transformation initiative to build an efficient, digital, and customer-centric organization.
Customer Service Excellence
Formation of Customer Service Excellence Cell and Portal, along with the Union Sampark initiative, to enhance customer experience.
Digital First Growth Engine
Focus on generating business through digital lending journeys, digital CASA accounts, and third-party products via digital channels.
Capital Raising Plan
Board approved a capital plan of ₹6,000 Cr for FY26, comprising ₹3,000 Cr Equity, ₹2,000 Cr AT-1, and ₹1,000 Cr Tier-2 capital.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Interest Margin (NIM) | 2.64% (Mar-26 Q) | Stabilization or improvement in NIM to support profitability. |
| RAM Advances Growth | 12.56% YoY (Mar-26) | Continued double-digit growth in RAM segments to drive overall credit expansion. |
| CASA Ratio | 35.21% (Domestic, Mar-26) | Further improvement in CASA ratio to lower the cost of funds and enhance profitability. |
| Credit Cost | 0.16% (Mar-26 Q) | Sustained low credit costs, indicating continued strong asset quality management. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -8.0% / mo
Technical chart
UNIONBANKdaily · 3Y+11.7%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 56. Wait for confirmation.
- SMA20 falling (~6.4% over last month) — short-term momentum negative.
- RSI(14) at 56 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 17% off 52W high · 17% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 79.7%.
- Valuation contributes 30/30 to the score.
- Growth contributes 15/25 to the score.
Main drags
- Altman Z is 1.7, in distress territory.
- Cash flow is weaker at 3/10; verify the latest quarterly trend.
- Quality is weaker at 7/20; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 34th percentile of the scored universe and 53rd percentile within Financial Services. Main check: financial discipline is weak at 48/100.
Healthy Trust Lite: Promoter holding is 74.8%. Key concern: Operating cash flow is negative at ₹-35798 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 53rd pctile, median 62 · Large: 19th pctile, median 74
149 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 74.8%.
- ▸Promoter pledge is zero.
- ▸7 years of positive FCF.
- ▸Debt/equity is 0.06.
Trust risks
- ▸Operating cash flow is negative at ₹-35798 Cr.
- ▸Altman Z is 1.73.
- ▸ROCE is low at 6.3%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 6.49
- P/B
- 0.94
- EV/EBITDA
- —
- Market Cap
- 126054.00Cr
Profitability
- ROE
- 15.70%
- ROCE
- 6.30%
- ROA
- 1.22%
- Dividend Y
- 3.03%
Growth (CAGR)
- Revenue 5Y
- 9.00%
- EPS 5Y
- 47.00%
- Revenue 3Y
- 10.00%
- EPS 3Y
- 32.00%
Balance Sheet
- Debt/Equity
- 0.06
- Interest Coverage
- —
- Altman Z
- 1.73
- Book Value
- 175.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 7/5
- OCF
- -35798.00 Cr
- EPS TTM
- 25.45
Shareholding
- Promoter Hold
- 74.76%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 50%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.