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

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)

• 9,064 ATMs

• 25,777 BC Points, and

• 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.