1. Opening Hook
Just when everyone was busy arguing whether PSU banks can really deliver without one-offs, Union Bank calmly dropped a ₹5,017 crore profit. No fireworks, no “adjusted for exceptional courage” footnotes—just numbers doing the talking.
Management walked in celebrating Sankranti, Lohri, Pongal and a Goldilocks economy, casually mentioning India’s growth might touch ~7.4%. Inflation behaved, liquidity flowed, RBI played Santa Claus with repo and CRR cuts—and Union Bank quietly used the chaos to reshuffle its balance sheet.
Bulk deposits were kicked out, treasury was slimmed down, low-yield assets were shown the exit door, and suddenly NIMs didn’t collapse like everyone feared.
Deposits? Meh. Credit growth? Back. Asset quality? Calm. Confidence? Very PSU-CEO-coded.
Stick around. The fun really starts when management explains how deposit growth is “not an issue” while CD ratios quietly creep up. 😏
2. At a Glance
- Net Profit ₹5,017 Cr – Finally crossed the ₹5k crore mark, PSU milestone unlocked.
- NIM at 2.76% – Repo cut storm survived with minimal scratches.
- Advances +7.1% YoY – Credit engine restarted, treasury passengers evicted.
- Deposits +3.4% YoY – Growth took a power nap, management not worried (apparently).
- CASA +140 bps QoQ – One bright spot that actually matters.
- ROA 1.35% – PSU banks now flexing private-bank metrics.
3. Management’s Key Commentary
“India is in a Goldilocks phase with high growth and low inflation.”
(Translation: Macro is doing the heavy lifting, we’re just not messing it up 😏)
“We consciously shed ₹38,000–40,000 crore of high-cost bulk deposits.”
(Translation: Expensive money was politely shown the exit
door.)
“Treasury book contracted by ₹15,000 crore and moved to credit.”
(Translation: G-Secs are boring, loans pay better.)
“Our NIM moved from 2.91% to 2.76% despite 125 bps repo cuts.”
(Translation: Please stop asking if margins will collapse.)
“95% of corporate book is BBB and above.”
(Translation: Risk department slept peacefully this quarter 😌)
“SMA-2 above ₹5 crore is only ₹4,285 crore.”
(Translation: Stress pipeline looks unusually… empty.)
“Credit cost is under control; provisions are adequate.”
(Translation: No hidden landmines—at least not this quarter.)
4. Numbers Decoded
| Metric | Q3FY26 | What It Really Means |
|---|---|---|
| Net Profit | ₹5,017 Cr | PSU bank officially in big-boy territory |
| NIM | 2.76% | Margin defence > margin expansion |
| Advances Growth | 7.13% YoY | Balance sheet finally breathing |
| Deposit Growth | 3.36% YoY | Growth outsourced to CASA |
| CASA Ratio | +140 bps QoQ | Rare PSU W |
| ROA | 1.35% | Quietly elite for a PSU |
| PCR | ~95% | Provisioning paranoia mode ON |
Headline takeaway: Profit quality improved not because of miracles, but because junk was removed first.
5. Analyst Questions (Decoded)
- Q: Why is deposit growth weak?
(A: We didn’t want expensive deposits anyway.) - Q: Will NIMs fall further?
(A: We’ll “defend” and hope
