Mumbai: Union Bank of India reported a net profit of ₹5,537 crore for the second quarter of the financial year 2026–27 (Q2 FY27), marking a 30.3% increase from ₹4,249 crore in the corresponding quarter of the previous financial year.
The bank’s Board of Directors approved the unaudited standalone and consolidated financial results for the quarter ended September 30, 2026.
The public sector lender recorded growth in net interest income and operating profit, alongside an expansion in advances and an improvement in asset quality. Its total business grew 12.01% year-on-year to ₹24,75,330 crore as of September 30, 2026.
Union Bank of India Q2 FY27 Net Profit Rises 30.3%
Union Bank of India’s net profit increased to ₹5,537 crore in Q2 FY27 from ₹4,249 crore in the year-ago quarter.
Interest income for the September quarter stood at ₹28,158 crore, while net interest income (NII) rose 20.1% year-on-year to ₹10,583 crore from ₹8,812 crore.
The bank’s operating profit increased 19% to ₹8,108 crore, compared with ₹6,814 crore in the corresponding quarter of the previous financial year. The growth in these key earnings indicators reflected an improvement in the bank’s core operating performance.
The bank reported a return on assets of 1.38% and a return on equity of 17.21% for the quarter.
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Total Business Grows 12.01% to ₹24.75 Lakh Crore
Union Bank of India’s total business expanded 12.01% year-on-year to ₹24,75,330 crore as of September 30, 2026.
Gross advances increased 18.53% to ₹11,55,876 crore, while total deposits grew 6.87% to ₹13,19,455 crore.
The bank’s global credit-deposit ratio stood at 88.13%, reflecting the relationship between its lending and deposit base.
Retail, Agriculture and MSME Advances Record Growth
The Retail, Agriculture and MSME (RAM) segment registered year-on-year growth of 14.65%, contributing to the bank’s overall credit expansion.
The segment’s performance was supported by growth across its three major categories:
- MSME advances: Increased 22.39% year-on-year.
- Retail advances: Grew 11.24% year-on-year.
- Agriculture advances: Rose 12.71% year-on-year.
RAM advances accounted for 57.47% of the bank’s domestic advances, highlighting the importance of these segments in its lending portfolio.
CASA Deposits Rise 14.65% Year-on-Year
Union Bank of India’s Current Account and Savings Account (CASA) deposits increased 14.65% year-on-year to ₹4,60,728 crore.
CASA deposits are an important source of relatively low-cost funds for banks. Growth in this segment can help lenders manage their funding costs and support lending activities.
The increase in CASA deposits accompanied the expansion of the bank’s overall business during the September quarter.
Gross NPA Falls to 2.42%, Net NPA at 0.42%
Union Bank of India continued to report improvement in its asset quality during Q2 FY27.
The gross non-performing asset (GNPA) ratio declined by 87 basis points year-on-year to 2.42%. On a sequential basis, the ratio improved from 2.65% in the preceding quarter to 2.42%, a reduction of 23 basis points.
The net non-performing asset (NNPA) ratio fell 13 basis points year-on-year to 0.42%. Compared with 0.47% in the previous quarter, the ratio declined by five basis points.
The bank’s provision coverage ratio remained strong at 95.20%, indicating a substantial level of provisioning against its non-performing assets.
Lower GNPA and NNPA ratios indicate that stressed loans account for a smaller proportion of the bank’s loan portfolio.
Capital Adequacy Ratio Stands at 17.94%
Union Bank of India’s capital position remained comfortable during the quarter.
The Capital to Risk-Weighted Assets Ratio (CRAR) stood at 17.94%, while the Common Equity Tier-1 (CET-1) ratio improved to 16.05%, compared with 14.37% a year earlier.
These capital ratios reflect the bank’s capital position relative to its risk-weighted assets and its capacity to support business operations within applicable regulatory requirements.
Union Bank Expands Renewable Energy Financing
Union Bank of India continued its participation in government-backed financial inclusion schemes and green financing initiatives.
The bank reported sanctions of ₹39,110 crore in the renewable energy sector as of September 30, 2026. The financing activity supports projects in the renewable energy space and reflects the bank’s participation in funding India’s energy transition.
The bank’s business strategy continues to focus on balanced growth across retail, agriculture and MSME lending while maintaining asset quality and adequate capital buffers.
Union Bank of India Operates Over 8,700 Branches
Union Bank of India has an extensive banking network across the country, comprising 8,713 branches, 8,815 ATMs and more than 28,000 business correspondent points.
This network supports the bank’s retail and institutional banking operations, financial inclusion initiatives and delivery of banking services across urban and rural areas.
About Union Bank of India
Union Bank of India is a public sector bank headquartered in Mumbai, Maharashtra. It provides a range of banking and financial services, including retail banking, corporate banking, agricultural finance, MSME lending and digital banking. The bank also participates in government financial inclusion programmes and supports financing for renewable energy and other development-oriented sectors.
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