Union Bank of India on Saturday reported a 12% rise in net profit to Rs 4,116 crore for the April–June quarter of FY26, compared with Rs 3,679 crore in the same period last year.Total income increased to Rs 31,791 crore in Q1 FY26 from Rs 30,874 crore a year ago. Interest income rose to Rs 27,296 crore from Rs 26,364 crore in the corresponding period of FY25, PTI reported.However, the bank reported a decline in net interest income, which dropped to Rs 9,113 crore from Rs 9,412 crore a year earlier. Operating profit also fell 11% year-on-year to Rs 6,909 crore, compared with Rs 7,785 crore in Q1 FY25.Asset quality showed notable improvement. Gross non-performing assets (GNPAs) as a percentage of gross advances dropped to 3.52% as of June 30, 2025, from 4.54% a year earlier. Net NPAs fell to 0.62% from 0.90% in the same period.Provisions for bad loans declined to Rs 1,153 crore in Q1 FY26, down from Rs 1,651 crore last year. The provision coverage ratio (PCR) improved to 94.65% from 93.49%, marking an increase of 116 basis points.Return on Assets (ROA) rose to 1.11%, up 5 basis points from 1.06% in June 2024. The capital adequacy ratio stood at 18.3%, compared with 17.02% a year ago.The bank’s total business grew 5% year-on-year to Rs 22,14,422 crore, while gross advances rose 6.83% to Rs 9,74,489 crore.