Are Union Bank (I) latest results good or bad?

Union Bank of India has reported its financial results for the quarter ending June 2025, revealing a mixed performance characterized by both positive and negative trends. On the positive side, the bank has achieved a notable reduction in its gross non-performing assets (NPA), which now stand at 3.52%, reflecting a consistent downward trajectory over the past five quarters. The net NPA is also low at 0.62%, indicating a continued decrease in stressed loans. Additionally, the bank reported its highest cash and cash equivalents in the last three years, amounting to Rs 89,503.48 crore, which suggests improved short-term liquidity. The capital adequacy ratio (CAR) is robust at 18.03%, showcasing a solid capital base relative to risk assets.
Conversely, the bank faced challenges in its profit metrics. Profit Before Tax (PBT) has declined to Rs 758.37 crore, marking a decrease of 17.3% compared to the previous four-quarter average. Profit After Tax (PAT) also fell by 8.5% to Rs 4,115.53 crore. Furthermore, a significant portion of the PBT, at 85.54%, is derived from non-operating income, which raises concerns regarding the sustainability of the bank's business model.

Overall, the financial results indicate that while Union Bank of India has made progress in managing its asset quality and liquidity, it is experiencing challenges in profitability. The company saw an adjustment in its evaluation based on these results.