Union Bank of India logs 30% y-o-y increase in net profit at ₹5,537 crore

Union Bank of India’s second quarter (Q2FY27) standalone net profit rose 30 per cent year-on-year (y-o-y) to ₹5,537 crore, on the back of a decent increase in net interest income and a decline in provisions and contingencies.

India’s fifth largest public sector bank, which logged a net profit of ₹4,249 crore in the year-ago period, reported a robust 19 per cent growth in advances. Deposit growth, at 7 per cent, however, lagged advances growth.

Net interest income (interest income less interest expended) was up 20 per cent y-o-y to ₹10,582 crore (₹8,813 crore in Q2FY26).

Other income, comprising commission income from non-fund based banking activities, fees, earnings from forex and derivative transactions, profit and loss (including revaluation) from investments, and recoveries from accounts previously written off, declined 7 per cent y-o-y to ₹4,651 crore (₹4,996 crore).

This is mainly due to treasury income and recovery in written-off accounts dipping 35 per cent y-o-y (to ₹701 crore) and 19 per cent y-o-y (to ₹740 crore), respectively.

Global and domestic net interest margin (NIM) improved to 2.86 per cent in the reporting quarter (from 2.67 per cent) and 2.95 per cent (from 2.75 per cent). Asheesh Pandey, MD and CEO, noted that the increase in repo rate will have a beneficial impact on the NIM.

Provisions and contingencies (other than tax) were down 50 per cent y-o-y to ₹701 crore (₹1,397 crore). Within this, non-performing assets (NPA) provisions rose 13 per cent y-o-y to ₹596 crore and other standard asset provisions were at ₹200 crore (nil in the year-ago quarter).

The bank received a write-back of ₹135 crore from standard assets provisions (it made a ₹882 crore provision in the year-ago quarter). Tax expense rose 60 per cent y-o-y to ₹1,870 crore (₹1,168 crore).

Gross non-performing assets (NPAs) position improved to 2.42 per cent of gross advances as at September-end 2026 against 3.29 per cent as at September-end 2025. Net NPAs position also improved to 0.42 per cent of net advances against 0.55 per cent.

Pandey emphasised that the stress book, comprising special mention accounts (at ₹2,282 crore) and restructured accounts (₹3,701 crore under resolution framework 1.0 and at ₹2,790 crore under resolution framework 2.0), is at the lowest in the last five years.

Global deposits grew 7 per cent y-o-y to ₹13,19,455 crore as at September-end 2026. Within this, domestic deposits were up 7 per cent y-o-y and stood at ₹13,18,977 crore as at September-end 2026. Low-cost current account, savings account (CASA) deposits increased to 34.93 per cent of domestic deposits as of September 30, 2026 from 32.56 per cent as of September 30, 2025.

Global advances rose by a healthy 19 per cent y-o-y to ₹11,55,876 crore as at September-end 2026. Within this, domestic advances were up 17 per cent y-o-y and stood at ₹11,05,753 crore as at September-end 2026.

Within domestic advances, RAM (retail, agriculture and MSME) advances and “corporate & others” advances were up 15 per cent y-o-y and 24 per cent y-o-y, respectively.

Published on October 19, 2026