Union Bank of India, incorporated in 1919, has a strong presence in India, headquartered in Mumbai. The bank stands as one of the largest state-owned banks in India, with the Government of India holding 74.76% in Bank's Total Share Capital as of March 2025. The Bank has international presence with 3 overseas branches at Hong Kong, DIFC (Dubai) and Sydney (Australia), demonstrating its global reach and operational capability.
The bank has established itself as a comprehensive financial services provider with a rich heritage spanning over a century. The bank is recognized for its diverse product range and commitment to providing innovative financial solutions, making it a significant player in India's banking landscape.
UCO Bank has built an impressive nationwide presence that extends beyond India's borders. The Bank's regional presence includes 3,302 domestic branches as of March 2025. Additionally, the Bank operates 2,613 ATMs across the country. The bank's international footprint is equally noteworthy, with 2 overseas branches (one each in Singapore and HongKong) and 1 representative office has been established in Tehran, Iran.
The bank's Singapore operations have a particularly rich history, having commenced from April 21, 1951, with the opening of Singapore Main branch and subsequently our Serangoon branch was opened in "Little India" on March 7, 1959. This international presence strengthens UCO Bank's position in global banking and cross-border financial services.
Union Bank of India has demonstrated strong financial performance with impressive growth metrics. The bank has a market cap of ₹1,16,932 Crore (up 12.6% in 1 year) as of June 2025, reflecting robust market confidence in the institution's prospects.
The bank's financial trajectory shows remarkable improvement across key metrics:
* Revenue: ₹1,08,417 Crore for FY25.
* Net Profit: ₹18,027 Crore for FY25.
* Q4 FY25 Performance: Net profit rose 50.57% to ₹5,011.22 Crore in the quarter ended March 2025, as against ₹3,328.27 Crore during the previous quarter ended March 2024.
Union Bank of India has delivered 441.6% returns in 5-years, showing 21.8% quarterly revenue growth and 18.4% YoY earnings growth with a 28.7% profit margin, positioning it as a potential multibagger stock in the banking sector.
Union Bank of India operates through multiple business segments, each contributing to its comprehensive service portfolio. The bank's operations are structured into several key areas that serve diverse customer needs across the financial spectrum.
The Corporate and Wholesale Banking segment offers a range of services including, but not limited to, trade finance, working capital, lines of credit, project financing, and channel finance. It assists with debt structuring/restructuring, loan syndication, structured finance, mergers and acquisition advisory, and private equity services. This segment demonstrates the bank's capability to handle complex corporate financial requirements.
The Retail Banking Operations segment offers mutual funds and various insurance products, such as life, non-life, health, and general insurance, ensuring comprehensive financial protection for individual customers. The Other Banking Operations segment offers comprehensive NRI banking services, along with a suite of treasury and remittance services, catering to the banking needs of non-resident Indians.
The bank has shown significant improvement in asset quality metrics. Gross non-performing assets (GNPA) stood at ₹35,350 Crore as of March 31, 2025, down from ₹43,098 Crore a year earlier. The gross NPA ratio reduced by 116 basis points (bps) YoY to 3.60%, while the net NPA ratio declined by 40 bps YoY to 0.63%. This substantial improvement in asset quality reflects the bank's enhanced credit risk management practices.
The capital to risk-weighted assets ratio (CRAR) improved to 18.02% as of March 31, 2025, from 16.97% a year earlier. The common equity Tier 1 (CET1) ratio also rose to 14.98% from 13.65% over the same period, indicating strong capital adequacy and regulatory compliance.
The bank's profitability metrics showcase strong operational efficiency:
* Return on Assets (ROA): Improved to 1.35% in Q4 FY25, up from 0.97% in Q4 FY24.
* Return on Equity (ROE): Increased to 19.07% in Q4 FY25.
* Net Interest Margin (NIM): Slightly declined to 2.87% from 2.91% in the previous quarter.
Union Bank of India has strategically focused on expanding its Retail, Agriculture, and MSME (RAM) segments. The bank's RAM segment grew 10.17% YoY. Within this, retail advances surged 22.14%, agricultural advances rose 12.50%, and MSME advances also posted growth. RAM advances comprised 56.20% of total domestic advances. This focus on a diversified lending portfolio reduces concentration risk and enhances sustainable growth prospects.
Total business grew 7.82% YoY, with gross advances rising 8.62% and total deposits increasing 7.22%. As of March 31, 2025, total business reached ₹22,92,644 Crore, demonstrating the bank's ability to expand its market presence effectively.
The bank has announced several important corporate developments. The board has recommended a dividend of ₹4.75 per equity share of ₹10 each for the financial year 2024-25. The payment of the dividend is subject to necessary statutory approvals and approval by the shareholders at the upcoming 23rd Annual General Meeting (AGM).
Union Bank plans to raise ₹6,000 Crore via equity and Basel III bonds, subject to approvals, indicating the bank's commitment to strengthening its capital base for future growth initiatives.
Union Bank of India's strong financial performance, improving asset quality, strategic focus on high-growth segments, and robust capital position make it a compelling investment proposition in the Indian banking sector. The bank's century-long heritage combined with modern banking practices positions it well for sustained growth in the evolving financial landscape.
