Union Bank of India Reports ₹4,249 Crore Net Profit in Q2FY26; NPA Ratios Improve Further – Indian PSU

The Board of Directors of Union Bank of India today approved the financial results of the Bank for the quarter ended September 30, 2025 (Q2FY26). The Bank reported a net profit of ₹4,249 crore, reflecting a 3.25% quarter-on-quarter increase, supported by improved asset quality, steady business growth, and strong capital ratios.

Financial Performance Highlights (Q2FY26)

• Net Profit: ₹4,249 crore in Q2FY26.

• Interest Income: ₹26,650 crore during the quarter.

• Operating Profit: ₹6,814 crore.

• Return on Assets (RoA): 1.16%.

• Return on Equity (RoE): 15.08%.

Despite a marginal decline in Net Interest Margin (NIM) to 2.67%, the bank maintained stable profitability driven by robust recoveries and efficient cost management.

Business Growth and Deposits

Union Bank’s total business stood at ₹22,09,828 crore as on September 30, 2025, registering a 3.24% year-on-year (YoY) growth.

• Gross Advances: ₹9,75,207 crore, up 4.99% YoY.

• Total Deposits: ₹12,34,621 crore, up 1.90% YoY.

• CASA Ratio: Stable at 32.56%, reflecting sustained low-cost deposit base.

• Credit-Deposit Ratio: Improved to 79.67% from 76.80% a year ago.

• RAM Segment Shows Strong Momentum

Union Bank’s Retail, Agriculture, and MSME (RAM) portfolio expanded by 8.14% YoY, contributing 58.83% to domestic advances.

• Retail Advances: Up 23.98% YoY.

• MSME Advances: Up 14.88% YoY.

• Agriculture Advances: ₹1,68,405 crore.

Asset Quality at Multi-Year Best

The Bank achieved notable improvement in asset quality metrics:

• Gross NPA: Reduced to 3.29% (down 107 bps YoY).

• Net NPA: Improved to 0.55% (down 43 bps YoY).

• Provision Coverage Ratio (PCR): Strengthened to 95.13%.

This consistent improvement underscores the bank’s focus on prudent credit management and recovery mechanisms.

Strong Capital Position

Union Bank continues to maintain a healthy capital adequacy profile:

• Capital to Risk-weighted Assets Ratio (CRAR): 17.07%.

• CET-1 Ratio: Improved to 14.37%, up from 13.88% YoY.

Digital and Financial Inclusion Network

Union Bank operates a robust network comprising:

• 8,655 branches (including foreign branches)

• 138 MSME Loan Points (MLPs), among others.

The bank continues to play a key role in Government of India’s Financial Inclusion initiatives:

• PMJJBY: 5.12 lakh new enrollments in Q2FY26.

• PMSBY: 17.86 lakh new enrollments.

• PMJDY: 3.33 crore accounts with ₹13,864 crore balance as of Sept 2025.

• APY: 2.70 lakh new enrollments in Q2FY26.

Focus on Green and Women Empowerment Initiatives

• Under its Union Nari Shakti Scheme, the bank sanctioned 4,086 applications worth ₹724 crore during Q2FY26, promoting women entrepreneurship.

In support of sustainable growth, Union Bank has sanctioned:

• ₹32,520 crore to the Renewable Energy Sector.

• ₹1,318 crore under its Union Green Miles initiative.

Conclusion

Union Bank of India’s Q2FY26 performance reflects its continued focus on growth, profitability, and sustainability. With a strong balance sheet, improving asset quality, and robust retail expansion, the bank remains well-positioned to leverage India’s economic momentum in the second half of FY26.