Union Bank of India on Thursday announced its Q2 FY26 standalone financial results, reporting stable profitability and a continued improvement in asset quality, though net interest income moderated sequentially.
Profit & Income Performance
The bank posted a net profit of ₹4,249.90 crore in Q2 FY26, rising from ₹4,115.53 crore in Q1 FY26 but lower versus ₹4,719.74 crore in Q2 FY25.
Net Interest Income (NII) came in at ₹8,812 crore, declining from ₹9,047 crore in Q1 FY26 due to higher funding costs and competitive lending rates.
Key Financial Metrics (₹ in lakh)
| Metric | Q2 FY26 | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Interest Earned | 26,65,024 | 27,29,556 | 26,70,843 |
| Total Income | 31,64,606 | 31,78,134 | 32,03,646 |
| Operating Profit | 6,81,395 | 6,90,866 | 8,11,276 |
| Net Profit | 4,24,908 | 4,11,553 | 4,71,974 |
| NII | 8,812 cr | 9,047 cr | N/A |
Expenses & Provisions
| Metric | Q2 FY26 | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Operating Expenses | 6,99,424 | 6,68,967 | 6,26,253 |
| Provisions & Contingencies | 1,39,673 | 1,66,451 | 1,71,220 |
| NPA Provisions | ₹52,600 lakh | ₹1,15,294 lakh | ₹2,50,442 lakh |
Lower provisioning supported profitability this quarter.
Asset Quality Improves Further
| NPA Ratio | Q2 FY26 | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Gross NPA | 3.29% | 3.52% | 4.36% |
| Net NPA | 0.55% | 0.62% | 0.98% |
| Gross NPAs (₹ lakh) | ₹32,08,513 | ₹34,31,131 | ₹40,49,886 |
| Net NPAs (₹ lakh) | ₹5,20,942 | ₹5,87,390 | ₹8,75,859 |
Asset quality strengthened on the back of recoveries and controlled slippages.
Half-Year FY26 Snapshot
| Metric | H1 FY26 | H1 FY25 |
|---|---|---|
| Total Income | ₹63,42,740 lakh | ₹62,91,008 lakh |
| Net Profit | ₹8,36,461 lakh | ₹8,39,859 lakh |
| Gross NPA | 3.29% | 4.36% |
| Net NPA | 0.55% | 0.98% |
Outlook
Union Bank delivered a steady quarter with stable profit, softer NII, and significant improvement in asset quality. A focus on recoveries and cost control appears to be helping offset margin pressures in a high-rate environment.
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