Union Bank of India Q4 Net profit rises 6.6%

State-owned Union Bank of India on Thursday reported a 6.6 per cent increase in net profit year-on-year to ₹5,316 crore for the fourth quarter of FY26, compared with ₹4,985 crore in the year-ago period, aided by lower provisions and operating expenses. Sequentially, net profit rose 6 per cent from ₹5,017 crore in Q3FY26.

 

Provisions declined 2.76 per cent year-on-year to ₹2,640 crore from ₹2,715 crore in Q4FY25. However, on a sequential basis, provisions rose sharply by 37.1 per cent from ₹1,925 crore in Q3FY26, mainly due to a one-time increase in standard asset provision of ₹700 crore.

Operating expenses declined 6.9 per cent year-on-year and 0.9 per cent sequentially to ₹6,863 crore in Q4FY26.

 

Net interest income (NII) for the quarter stood at ₹9,406 crore, marginally lower by 1.1 per cent year-on-year, but up 0.8 per cent sequentially. Interest earned declined 4.5 per cent year-on-year to ₹26,439 crore, while interest expenses fell 6.3 per cent to ₹17,033 crore.

 

Net interest margin (NIM) moderated to 2.64 per cent in Q4FY26, from 2.76 per cent in the previous quarter. NIM in Q4FY25 was 2.87 per cent.

“We have seen a cumulative repo rate reduction of 125 basis points, of which about 53–54 per cent has been transmitted. Despite this, our margins have remained relatively stable, with NIM moderating only from 2.91 per cent (FY25) to 2.70 per cent (FY26), a decline of just 21 basis points,” said Asheesh Pandey, MD & CEO, Union Bank of India.

Other income declined 2.6 per cent year-on-year to ₹5,412 crore in Q4 but rose 19.2 per cent sequentially. Treasury income declined sharply to ₹636 crore in Q4FY26, down 61.4 per cent year-on-year and 29.4 per cent sequentially.

 

“Treasury income has declined during the period due to market conditions. As far as regulatory limits are concerned, including the RBI’s cap on overnight positions, our exposure remained well within limits at around $30 million. We maintained a cautious stance and avoided taking large positions during a volatile phase, which ensured there was no material impact on earnings,” Pandey said.

 

Operating profit before provisions and contingencies increased 3.3 per cent year-on-year to ₹7,955 crore and rose 14.6 per cent sequentially.

“Other income in the previous year included a one-off recovery of ₹787 crore from the sale of two NARCL-backed accounts, which had sovereign guarantee support. Adjusting for that, other income declined by about 1.9 per cent year-on-year,” Pandey added.

 

On the asset quality front, gross non-performing assets (GNPA) declined 14 per cent year-on-year to ₹30,401 crore, while net NPAs fell 15.1 per cent to ₹5,067 crore during the same period. In percentage terms, the GNPA ratio improved to 2.82 per cent from 3.60 per cent a year ago, while the net NPA ratio eased to 0.48 per cent from 0.63 per cent.

On the business front, total advances grew 9.7 per cent year-on-year to ₹10.79 trillion and 6.1 per cent sequentially, indicating steady credit demand. Deposits, however, were largely flat on a yearly basis at ₹13.07 trillion, though they rose 6.9 per cent quarter-on-quarter.

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Bank of Maharashtra Q4 Net profit jumps 34% YoY; NII up 20%

 In the fourth quarter of FY26, public sector lender Bank of Maharashtra reported a net profit of Rs 2,014 crore on Monday, up 35% from Rs 1,493 crore in the same quarter of the previous fiscal year.

In addition to showing an 8.19% sequential increase, net interest income (NII) increased 18.81% year over year (YoY) to Rs 3,702 crore in Q4FY26 from Rs 3,116 crore in Q4FY25.

Operating profit increased 7.69% quarter-over-quarter (QoQ) and 16.92% YoY to Rs 2,946 crore in Q4FY26 from Rs 2,520 crore in the same period last year.

Net revenues, which include net interest income and other income, rose 13.26% year over year from Rs 4,097 crore in Q4FY25 to Rs 4,640 crore in Q4FY26. Revenues increased by 6.55% sequentially.

Gross non-performing assets (NPA) decreased to 1.45% as of March 31, 2026, from 1.74% a year earlier and 1.60% in the preceding quarter, indicating an improvement in asset quality during the quarter. Additionally, net non-performing assets (NPA) decreased to 0.13% from 0.15% in the previous quarter and 0.18% in the same period last year.

The provision coverage ratio stood at 98.59% as of March 31, 2026, improving from 98.26% a year earlier and 98.41% as of December 31, 2025.

As of March 31, 2026, total business grew 17.47% YoY to Rs 6.43 lakh crore. Total deposits rose 14.14% to Rs 3.50 lakh crore, while gross advances increased 21.74% to Rs 2.91 lakh crore. Net advances also rose 22.03% to Rs 2.88 lakh crore.

The RAM segment, comprising retail, agriculture, and MSME, expanded 20.74% YoY. Within this, retail advances surged 32.39% to Rs 85,857 crore, while MSME advances grew 10.71% to Rs 53,547 crore.

For FY26, net profit rose 27.17% to Rs 7,019 crore, while net interest income increased 17.13% to Rs 13,664 crore. The domestic net interest margin stood at 3.91%.

The bank has proposed a final dividend of 12%, or Rs 1.20 per equity share, for FY26. This is in addition to the interim dividend of 10%, or Rs 1.00 per share, already declared and paid.

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The government orders PSU Banks finish the 13th BPS Wage Revision on schedule

The Indian government's Ministry of Finance has issued a formal letter instructing public sector banks to finish the 13th BPS on schedule. The 10th Joint Note and 13th Bi-partite Settlement for Public Sector Bank employees' wage revision is set to go into effect on November 1st, 2027.

The wage revision settlements were previously signed every two to three years. However, the 12th Bi-partite Settlement (also known as the 9th Joint Note) was completed in just 14 months. The government hopes to finish the settlement on schedule this year.

This year, public sector banks have been advised to finish the negotiations within a maximum of 12 months.

According to the government, it has been noted that in the past, significant changes to the relevant regulations have been made after a significant amount of time had passed since the settlements.

It is emphasized that the consequential changes to the pertinent regulations should also be finished before the next wage settlement's due date, since talks for the settlement are now being started in a timely manner.

It usually takes three to four months to implement consequential changes to the regulations. As a result, it is recommended that the banks start the process of amending the pertinent regulations as soon as the negotiations are concluded. This will ensure that the amendment procedures are finished well in advance of the next wage settlement's scheduled start date, which is November 1, 2027.

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Tentative date of results of PSU and Private Banks for Q4FY26

  

Bank	Result Date
Bank of Baroda (BOB)	6th May (T)
Bank of India(BOI)	9th May (T)
Bank of Maharashtra(BOM)	20th April
Canara Bank	8th May (T)
Central Bank of India	28th April (T)
Indian Bank	3rd May (T)
Indian Overseas Bank(IOB)	2nd May (T)
Punjab & Sind Bank	29th April (T)
Punjab National Bank(PNB)	8th May (T)
State Bank of India(SBI)	3rd May (T)
UCO Bank	28th April (T)
Union Bank of India	9th May (T)
Axis Bank	25th April
HDFC Bank	18th April
ICICI Bank	18th April
Kotak Mahindra Bank	2nd May
Indusind Bank	20th April
IDBI Bank	28th April (T)
IDFC First Bank	25th April
Yes Bank	18th April

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Bank of India(BOI) Provisional Business Figures 31 March 2026

As of March 31, 2026, the Bank of India(BOI) has published Provisional Business Figures. According to reports, the bank's total business is Rs 16.9 lakh crore.

Bank of India Provisional Business Figures 31 March 2026 (Amt Rs cr)

Particulars	31.03.2025 (Audited)	31.12.2025 (Reviewed)	31.03.2026 (Provisional)*	Y-o-Y Growth (%)
Business (Global)	14,82,588	16,27,602	16,98,026	14.53%
Deposits (Global)	8,16,541	8,87,288	9,27,460	13.58%
Gross Advances (Global)	6,66,047	7,40,314	7,70,566	15.69%
Deposits (Domestic)	7,00,298	7,65,499	8,00,682	14.33%
Gross Advances (Domestic)	5,63,550	6,29,080	6,53,441	15.95%
RAM Advances (Gross) (Domestic)	3,22,673	3,68,242	3,82,796	18.63%

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UFBU Leaders Raises Voice on DFS PLI Move

In response to recent messages from the Department of Financial Services (DFS) about the Performance Linked Incentive (PLI) program, the United Forum of Bank Unions (UFBU) has written to the Chief Labour Commissioner (CLC) requesting immediate action. 

Joint Secretary of AIBEA Devidas Tuljapurkar and General Secretary of INBOC Prem Makker voiced serious concerns about the action in remarks given, especially in light of the ongoing conciliation process.In a letter dated March 19, 2026, UFBU objected to the DFS communication that was sent out the day before, claiming that it essentially implements a redesigned PLI scheme while conciliation proceedings are still in progress. 

The union emphasized that any unilateral modifications would be against the agreed status and that the PLI structure is still being discussed, particularly for officers from Scale IV and higher.Concerns about extending updated PLI payments beyond Scale III were also brought up, and it was cautioned that doing so may interfere with the conciliation process, spark labor unrest, and jeopardize collective bargaining. 

The CLC has been called by UFBU to step in, call an urgent meeting, and halt the implementation."This development appears to be a deliberate and calibrated attempt by sections of the banking leadership, with tacit policy support, to create divisions within the unionized workforce," AIBEA Joint Secretary Devidas Tuljapurkar told in response to the incident. Selectively rewarding top officials in Scale IV and above—often referred to as "Executives"—who participate in the decision-making process within banks appears to be the key to the method.

These CEOs are gradually separating themselves from the more general concerns of the workforce by tying their pay rewards to short-term performance indicators. This could undermine long-standing customs of collective representation in the banking industry and impair the workforce's collective bargaining power.

More significantly, history provides a sobering caution. The Global Financial Crisis was largely caused by a similar incentive-driven strategy. Aggressive bonus-linked arrangements in the US promoted excessive risk-taking, chasing short-term profits, and diluting prudential standards. Such remuneration schemes skewed decision-making and undermined institutional stability, as demonstrated by later investigations, including those examined under the Federal Reserve's supervision. It's hard to deny the similarities.

If the Indian financial sector adopts a similar strategy, especially in institutions that are crucial to the system, it could:  Promote making risky decisions that are unrelated to long-term sustainability, undermine institutional accountability and governance standards, and cause a rift between management and employees.

Executives may view these incentives as lucrative and empowering in the near term. But when the banking cycle takes a negative turn, which it eventually does, those same CEOs may find themselves vulnerable, alone, and responsible for structurally poor choices. As a result, this incentive structure is a systemic risk concern rather than just a labor-relations issue.

Neither the executives' own long-term interests nor those of the banking institutions are served.

A prudent banking system must be built on:

Collective responsibility, not segmented loyalty

Long-term stability, not short-term gains

Ethical governance, not incentive-driven compromises

Any deviation from these principles risks repeating mistakes that the global financial system has already paid a heavy price for.”

"It is really very unfortunate, painful in fact," INBOC General Secretary Prem Makker said. All of us leaders at UFBU have similarly struggled to comprehend how the government operates. The CLC claims that the issue is being discussed and that PLI will be put into effect following the revised plan. It was initially applied up to Scale III. What is this? We spoke with the CLC. You're phoning us, but why? The administration is not following your counsel, so whatever you say is not sacred. If we continue to obey while the government disobeys, what good is conciliation?

It's not that we oppose paying Scale IV and higher employees more PLI. The earlier settlement, which is up to Scale VII—you pay them based on the banks' performance—was one cause for anxiety. It was going quite well. This one, however, is an individual performance. We can comprehend this to some extent as well, but with individual-based performance, you are once again dividing into several categories. Someone is getting paid more, and that higher is now comparable to what private sector companies do, when they pay one employee 10 lakhs and the remaining team members 30–40 thousand.

They are poisoning the atmosphere, but I don't think they will gain anything by splitting the people. It's true that they are widening the gap. We won't allow individuals who will receive higher PLI tomorrow to just choke those on the ground. We'll fight for a long time.Consulting for financial services.Concerns about the PLI framework, its implementation procedure, and its possible effects on labor relations and worker dynamics in the banking industry are reflected in the UFBU letter and statements made by union leaders.

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Government orders this PSU Bank to credit PLI for Scale IV and Above

The Performance Linked Incentive (PLI) for Whole-Time Directors (WTDs) of Punjab National Bank (PNB) for the fiscal year 2024–2025 has been authorized by the Indian government through the Ministry of Finance. 

The Department of Financial Services announced the decision in a formal letter dated March 18, 2026. MD&EDs would receive PLI of Rs. 1,00,67,530.31.

According to the updated PLI guidelines published by DFS, Ministry of Finance, the government has directed Punjab National Bank to pay PLI to officers from Scale IV to Scale VIII. 

The government and bank unions met a few days ago to talk about the PLI issue. It was said that PLI would be distributed proportionately to each officer and that conversations would take place. However, the meeting and the conversations that took place have been called into doubt by such a letter from DFS.

New PLI Model for Senior Officers of Bank

• Scale IV officers can get 70% of their annual basic pay (approximately ₹11.75 lakh per year).
• Scale V and VI officers can get 80% of their annual basic pay (approximately ₹14.40 lakh per year).
• Scale VII officers can get 90% of their annual basic pay (approximately ₹22.50 lakh per year).
• EDs and MDs of Nationalised Banks, DMDs, MDs, and Chairman of SBI can get PLI up to 100% of their annual basic pay

Grade	PLI Ceiling as % of Annual Basic Pay
EDs and MDs of Nationalised Banks, DMDs, MDs, and Chairman of SBI	100%
Scale VII and Scale VIII	90%
Scale V and Scale VI	80%
Scale IV	70%

Punjab National Bank(PNB):

State Bank of India(SBI):

Bank of Baroda(BoB):

Indian Bank:

Bank of India:

Central Bank of India:

Canara Bank:

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This PSU Bank Becomes First Public Sector Bank to Receive ISO 31000:2018 Certification

Indian Overseas Bank (IOB) has achieved a major milestone by becoming the first Public Sector Bank in India to be certified with ISO 31000:2018 – Risk Management Guidelines.

ISO 31000:2018 is an international standard that provides guidelines for effective risk management. It is issued by the International Organization for Standardization (ISO) and helps organizations identify, assess, and control risks in a structured way.

The standard offers a framework and set of principles to improve decision-making, strengthen internal controls, and reduce potential losses.

In the banking sector, following ISO 31000:2018 means the bank has strong systems to manage financial, operational, and compliance risks. It reflects the organization’s commitment to global best practices, transparency, and long-term stability.

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