Union Bank of India's board of directors, at its meeting held on April 23, 2026, recommended a final dividend of ₹5 per equity share of face value ₹10 for the financial year ended March 31, 2026. The announcement was formally communicated to the National Stock Exchange through multiple board meeting outcome filings on May 26, 2026.

Dividend Details

Dividend Growth Trend

The FY26 payout continues a clear upward trajectory in Union Bank's dividend history. After declaring ₹1.90 per share in FY22, the bank raised its payout to ₹3.00 in FY23, followed by ₹4.75 in FY25, and now ₹5.00 in FY26. This represents a 163% cumulative increase in per-share dividend over four years, reflecting consistent improvement in the bank's profitability and capital position since its merger with Andhra Bank and Corporation Bank in 2020.

In the earlier part of the decade, Union Bank had distributed significantly higher nominal dividends, including ₹8 per share in both FY12 and FY13, and ₹6 per share in FY15. However, asset quality stress and capital conservation requirements led to sharply reduced payouts through the late 2010s, with the dividend falling to ₹1.95 per share in FY16 before recovering in recent years.

Market Context

With the NSE trade data and current market price unavailable at the time of this report, a precise dividend yield calculation cannot be provided. Investors should compute yield by dividing ₹5 by the prevailing market price at the time of the record date. For context, Union Bank shares have historically traded in a range that places public sector bank dividend yields between 2% and 4%, making the absolute payout meaningful for income-oriented investors.

Public sector banks as a group have been re-rated by the market over the past two to three years on the back of improved asset quality, rising net interest margins, and stronger return ratios. Union Bank's consistent dividend escalation aligns with this sector-wide trend of increasing shareholder returns.

What This Means for Investors

The ₹5 per share dividend announcement carries several points of note for existing and prospective shareholders. First, the unbroken four-year upward dividend trend signals management confidence in sustaining earnings, particularly as credit costs have moderated materially from peak stress levels. Second, a 50% payout on face value, while modest in absolute terms, demonstrates a disciplined capital allocation approach for a bank that is also investing in branch expansion and digital infrastructure. Third, investors holding Union Bank shares in demat form should track the record date announcement, which is yet to be disclosed, to confirm eligibility for the payout.

Union Bank of India, headquartered in Mumbai, operates one of India's largest public sector banking networks with over 8,500 branches. The Government of India holds a majority stake in the bank, making dividend decisions subject to broader capital adequacy and regulatory considerations under the Banking Regulation Act, 1949.