Union Bank of India delivered robust financial results for the September quarter, with consolidated net profit rising 30.31% year-on-year to ₹5,537 crore compared to the previous year. According to the latest exchange filing, the bank's net interest income saw a significant 20% increase to ₹10,582 crore from ₹8,813 crore in the year-ago quarter. Return on assets improved to 1.38% and return on equity stood at 17.21% during the quarter. The strong performance drove positive market sentiment, with shares of Union Bank of India hitting the day's high of ₹181.05 on BSE, gaining as much as 5.3% against the last closing price of ₹172. As of 1.33 PM, the stock was up 4.65% at ₹180, with over 30 million shares changing hands on BSE and NSE combined. So far this year, the stock has risen 17% and 32% in a year, outperforming the BSE Sensex which has lost 13% year-to-date and 12% in a year.
The bank showed significant improvement in asset quality metrics on a sequential basis. As reported by the latest exchange filing, gross NPA fell 87 basis points year-on-year to 2.42%, while net NPA declined 13 basis points to 0.42% as of September 30, 2026. Provision coverage ratio improved to 95.20%, demonstrating enhanced risk management. In absolute terms, Gross NPA stood at ₹27,916 crore compared to previous figures, while Net NPA was ₹4,768 crore versus ₹5,016 crore in the previous quarter. Provisions for the quarter dropped significantly to ₹700 crore from ₹979 crore reported during the June quarter, aiding the growth in profitability. According to Upstox Securities, gross non-performing assets as a percentage of total advances came in at 2.42% compared with 3.29% in the same period last year, showing substantial year-on-year improvement. Fresh slippages moderated to ₹1,856 crore from ₹2,062 crore in Q1, indicating stabilizing asset quality across loan verticals. Recoveries during the quarter stood at ₹1,226 crore from ₹913 crore, while upgradations increased to ₹315 crore from ₹279 crore in June. Asheesh Pandey, MD & CEO, noted 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) are at the lowest in the last five years.
Union Bank demonstrated improved operational efficiency with operating profit improving 19% from last year to ₹8,108 crore from ₹6,814 crore last year. According to the latest exchange filing, net interest margins expanded to 2.95% from 2.75% during the same quarter last year, with global and domestic net interest margin (NIM) improving to 2.86% in the reporting quarter from 2.67%. Total business grew 12.01% year-on-year, with gross advances expanding 18.53% year-on-year to ₹11,55,876 crore, while total deposits rose 6.87% to ₹13,19,455 crore. Low-cost current account, savings account (CASA) deposits increased to 34.93% of domestic deposits as of September 30, 2026 from 32.56% as of September 30, 2025. Other income, comprising commission income from non-fund based banking activities, fees, earnings from forex and derivative transactions, profit and loss from investments, and recoveries from accounts previously written off, declined 7% year-on-year to ₹4,651 crore from ₹4,996 crore. Provisions & Contingencies (other than tax) was down 50% year-on-year to ₹701 crore from ₹1,397 crore, with non-performing assets provisions rising 13% year-on-year to ₹596 crore and other standard asset provisions at ₹200 crore.
The bank demonstrated strong business growth with consolidated advances rising 19.4% year-on-year to ₹11,36,280.44 crore as of September 30, 2026, from ₹9,51,795.76 crore. As reported by the latest exchange filing, deposits increased 6.9% to ₹13,22,309.68 crore. The consolidated capital adequacy ratio improved by 91 basis points to 18.61% from 17.70%, while common equity tier-1 ratio increased by 171 basis points to 16.72%. Net worth rose 14.6% to ₹1,34,105.53 crore from ₹1,17,044.78 crore. The bank's share of profit from an associate rose 45.6% to ₹210.60 crore. Capital adequacy remained comfortable, with CRAR at 17.94% and CET-1 ratio improving to 16.05% from 14.37% a year earlier, providing a strong foundation for future growth.
Union Bank's diversified business segments showed strong performance across retail and corporate banking. According to the latest exchange filing, revenue from corporate and wholesale banking increased 11.3% to ₹12,451.29 crore, with the segment result rising 98.2% to ₹2,849.34 crore. Retail banking revenue grew 9.7% to ₹12,532.78 crore, while its segment result increased 56.2% to ₹2,514.73 crore. The standalone net profit of ₹5,500 crore beat consensus estimates of ₹5,050 crore, driven by reduced credit costs and lower NPA provisioning. Management targets Net Interest Margin expansion over 3% and CASA ratio improvement to 36%, with the current CASA ratio showing slower movement relative to the 36% target. On the downside, the 174-175 zone, which coincides with the 200-DMA, will act as immediate support, while stronger support is placed at 165. Technical analysts note that Union Bank has surged nearly 5% following its quarterly results and has moved back above the 200-DMA at 175. Shares of Union Bank of India are trading 3.7% higher on Monday at ₹178, reflecting continued positive market sentiment following the strong quarterly results.
