Q4 2025 Union Bank of India Ltd Earnings Call Transcript
Key Points
- Union Bank of India (BOM:532477) recorded the highest annual net profit of INR17,957 crores for FY25, with a 51% YoY increase in Q4 net profit.
- Operating profit for Q4 FY25 stood at INR7,700 crores, marking an 18% YoY growth, and the full-year operating profit reached INR31,090 crores, registering a 10% YoY growth.
- Return on assets improved to 1.35% in Q4 FY25, up from 0.97% in the same quarter last year, and return on equity increased to 18.34% from 15.12%.
- Capital adequacy ratio is strong at 18.02%, with a CET1 ratio of 14.98%, providing ample headroom for growth.
- Gross NPA reduced by 116 bps YoY to 3.6%, and net NPA declined by 40 bps YoY to 0.63%, reflecting improved asset quality.
- Credit growth was muted at 8.6% for the year, below the target range of 11% to 13%, and deposit growth was also lower than expected at 7.2%.
- Net interest margin (NIM) was at 2.91% for FY25, within the guided range but facing downward pressure due to recent policy rate cuts.
- There was a sharp increase in employee and operational expenses in Q4, partly due to staff-related provisions and CSR spend.
- MSME and Agri slippages saw a sharp sequential increase in Q4, attributed to repeated restructured accounts and automation of asset classification.
- The bank refrained from providing guidance for the next fiscal year due to prevailing market volatility and evolving macroeconomic conditions.
Ladies and gentlemen, good day, and welcome to the Union Bank of India earnings conference call for the period ended March 31, 2025. The Bank is represented by the Managing Director and CEO, Ms. A. Manimekhalai; executive directors Nitesh Ranjan, Rama Subramanian S., Sanjay Rudra, Pankaj Dwivedi and other members of the top management.
(Operator Instructions) Please note that this conference is being recorded.
Now I hand over the call to Mr. Ajay Bansal, Deputy General Manager. Thank you, and over to you.
Thanks, madam. Good afternoon, ladies and gentlemen. I, Ajay Bansal, Head of Investor Relations, welcome you all for the Union Bank of India earnings con call for the period ended March 31, 2025. The structure of the con call shall include a brief opening statement by respective MD and CEO madam, and the end floor will be open for interaction.
Before getting into the con call, I will read out the usual disclaimer statement. I would like to submit that certain statements
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