Union Bank of India Posts 31% Jump in Q2 Profit to ₹5,781 Crore
Higher Interest Earnings, Lower Provisions Drive Quarterly Performance as Advances Grow 19.4%
The Impressive TimesNew Delhi, October 19, 2026: Union Bank of India reported a strong financial performance for the second quarter of the 2026–27 financial year, with consolidated net profit climbing 30.6% year-on-year to ₹5,781 crore, compared with ₹4,425.95 crore in the corresponding quarter last year. Improved interest income, stronger operating earnings and a substantial reduction in provisions supported the growth.
The bank’s net interest income (NII), representing the difference between interest earned and interest paid, increased 20.2% to ₹10,765.32 crore from ₹8,957.92 crore a year earlier. Interest earned during the quarter rose 8.3% to ₹28,377.73 crore, while interest expenses grew at a more moderate pace of 2.1% to ₹17,612.41 crore.
Operating profit before provisions and contingencies advanced 19.1% to ₹8,150.96 crore, against ₹6,844.79 crore in the year-ago period. Provisions and contingencies, excluding tax, declined nearly 50% to ₹702.19 crore from ₹1,392.28 crore. However, provisions for non-performing assets increased 15% to ₹596.48 crore.
Profit before tax rose 36.6% to ₹7,448.77 crore, while tax expenses increased 60.4% to ₹1,878.37 crore. Total income grew 5.4% to ₹33,471.29 crore, although other income fell 8.2% to ₹5,093.56 crore. Earnings per share improved to ₹7.57 from ₹5.80.
The bank recorded a significant expansion in its lending portfolio during the quarter. Consolidated advances increased 19.4% year-on-year to ₹11.36 lakh crore as of September 30, 2026, compared with ₹9.52 lakh crore a year earlier.
Deposits grew 6.9% to ₹13.22 lakh crore from ₹12.37 lakh crore. The faster growth in advances compared with deposits highlights the importance of maintaining a balanced funding position as credit demand expands.
The bank’s capital position also strengthened. Its consolidated capital adequacy ratio improved to 18.61% from 17.70%, while the Common Equity Tier 1 ratio rose to 16.72%. Net worth increased 14.6% to ₹1.34 lakh crore from ₹1.17 lakh crore.
Corporate and wholesale banking delivered a particularly strong improvement in profitability. Revenue from the segment rose 11.3% to ₹12,451.29 crore, while its segment result nearly doubled, increasing 98.2% to ₹2,849.34 crore.
Retail banking revenue grew 9.7% to ₹12,532.78 crore, with the segment result rising 56.2% to ₹2,514.73 crore. In contrast, the treasury business faced pressure, with revenue declining 9.7% to ₹6,886.53 crore and its segment result falling 20.4% to ₹1,299.55 crore.
The bank sustained its earnings momentum through the first six months of FY27. Consolidated net profit for the April–September period increased 29% to ₹11,422.52 crore, compared with ₹8,853.90 crore in the same period of the previous financial year.
The quarterly results reflect the combined impact of stronger net interest income, lower overall provisions and improved performance in corporate and retail banking. Continued growth in advances and a stronger capital base further supported the bank’s financial position.
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