Union Bank of India reports strong Q2 performance with Rs. 4,249 crore net profit

THEBUSINESSBYTES BUREAU

MUMBAI, OCTOBER 30, 2025

The Board of Directors of Union Bank of India on Thursday approved the financial results for the quarter ended September 30, 2025, showcasing a strong operational performance across key parameters. The Bank reported a robust net profit of Rs. 4,249 crore for the second quarter of FY26, driven by healthy growth in advances and continued improvement in asset quality.

Interest income during the quarter stood at Rs. 26,650 crore, reflecting sustained momentum in the Bank’s lending activities. Union Bank’s total business reached an impressive Rs. 22,09,828 crore as on September 30, 2025, marking a 3.24% year-on-year growth. Gross advances increased by 4.99% year-on-year, while total deposits grew by 1.90% year-on-year, taking the Bank’s total deposit base to Rs. 12,34,621 crore.

The Bank’s retail, agriculture, and MSME (RAM) portfolio continued to be a major growth driver, expanding by 8.14% year-on-year. Within this, retail advances grew sharply by 23.98%, and MSME advances by 14.88%, underscoring the Bank’s strong focus on priority and small business lending. RAM advances now constitute 58.83% of total domestic advances, highlighting Union Bank’s strategic shift toward diversified and granular portfolios.

On the asset quality front, the Bank achieved significant improvement with Gross NPA declining by 107 basis points year-on-year to 3.29%, and Net NPA falling by 43 basis points to 0.55% as of September 30, 2025. These achievements reflect Union Bank’s effective risk management and recovery initiatives.

The capital position of the Bank remains strong, with the Capital to Risk-Weighted Assets Ratio (CRAR) at 17.07% and the Common Equity Tier-1 (CET-1) ratio improving from 13.88% in the previous year to 14.37% this quarter.

Union Bank also reported healthy returns, with Return on Assets (ROA) at 1.16% and Return on Equity (ROE) at 15.08% during Q2FY26, underscoring enhanced profitability and operational efficiency.

The performance for the second quarter of FY26 reflects Union Bank of India’s strong growth trajectory, supported by prudent lending, sound asset quality, and a solid capital foundation, positioning the Bank well for continued expansion in the coming quarters.