Union Bank of India Q2 net profit rises 30% to ₹5,537 crore, NII advances 20%; asset quality improves

Union Bank of India, the country's leading state-run lender on Monday, October 19, reported a net profit of ₹5,537 crore in quarter ended September 2026, marking an increase of 30% from ₹4,249 crore in the same period last year. The jump in profit came on the back of lower provisions and contingencies, its provisions dropped 50% to ₹700.75 crore from ₹1,397 crore.

However, its provisions for non-performing assets rose to ₹596 crore from ₹526 crore.

Union Bank's net interest income or difference between interest earned on loans and expended on deposits jumped 20% to ₹10,583 crore at the end of the second quarter from ₹8,812 crore in the year-ago period.

Its net interest margin jumped 19 basis points to 2.86%

The bank's asset quality showed an improvement as its gross non-performing assets, as a percentage of total advances, came in at 2.42% compared with 3.29% in the same period last year.

In absolute terms, gross NPA stood at ₹27,916.21 crore as against ₹32,085.13 crore.

Total business of the bank increased by 12.01% annually, wherein gross advances increased by 18.53% year-on-year (YoY) and total deposit grew by 6.87% annually.

Total business of the bank stood at ₹24,75,330 crore at the end of September quarter. Global deposits increased by 6.87% and total deposits base stood at ₹13,19,455 crore.

Retail, agri and MSME (RAM) loans increased by 14.65% YoY. Retail loans rose 11.24% and MSME loans advanced 22.39%.

RAM advances, as a percentage of domestic loans, stood at 57.47%.

The bank’s total network stood at 8,713 branches, 8,815 ATMs and 28,654 banking correspondent points.

Bank’s return on assets and return on equity stood at 1.38% and 17.21% respectively during Q2FY2, Union Bank of India said in a statement.

Union Bank of India shares have so far this year advanced 11%.

In intraday deals, Union Bank of India shares traded 4.4% higher at ₹179, outperforming the NIFTY50 index which was down 1%.