Union Bank of India reported a robust 50 per cent year-on-year jump in its March quarter net profit to Rs 4,985 crore, driven by improved non-interest income and lower provisions.However, the state-run lender flagged concerns over pressure on net interest margins (NIMs) going forward due to expected rate cuts by the Reserve Bank of India.The bank had posted a net profit of Rs 3,311 crore in the same quarter last fiscal. Total income rose to Rs 33,254 crore from Rs 31,058 crore a year ago.Union Bank’s Managing Director and CEO A Manimekhalai, addressing reporters on Friday, said that with over 29 per cent of its loan book linked to the repo rate, the bank’s margins are likely to face strain as interest rates decline. While the bank achieved a NIM of 2.91 per cent in the March quarter—within its target range—Manimekhalai declined to offer a margin outlook for the current fiscal, citing economic uncertainties.Loan growth for FY25 came in at 8.62 per cent, falling short of the 11–13 per cent target. Core net interest income remained flat at Rs 9,514 crore. However, non-interest income rose by 18 per cent to Rs 5,559 crore, and provisions were cut by 16 per cent to Rs 2,715 crore, boosting profitability.Operating expenses surged 20 per cent quarter-on-quarter to Rs 7,373 crore, largely due to human resource-related costs, which pushed the cost-to-income ratio up to 48.91 per cent from 45.14 per cent.On operational readiness, the bank said it has asked staff in border areas to remain vigilant and adhere to state-level banking guidelines. It is also ensuring sufficient cash availability in branches and ATMs to support uninterrupted economic activity and has strengthened its cybersecurity infrastructure.Looking ahead, the CEO emphasized Union Bank’s commitment to balancing profitability with prudent, sustainable growth, although she declined to provide credit growth guidance for FY26.Union Bank shares were trading 6.28 per cent higher at Rs 122.70 on the BSE, outperforming the benchmark index, which was down 1.05 per cent.