Union Bank of India profit reaches 5,537 crore rupees as interest income rises
Key Facts
Union Bank of India reported standalone net profit of 5,537 crore rupees for the quarter ended September 2026, according to results cited by Moneycontrol. The results were announced on 19 October 2026 and cover the second quarter of fiscal 2026–2027, which includes the financial period covered by the disclosure. Moneycontrol attributed the improvement in profitability to growth in net interest income and lower provisions, both of which supported the bank's performance during the quarter. Consolidated net profit for the same period was 5,781 crore rupees, according to Business Standard, compared with the profit reported on a standalone basis. The earnings came alongside lending expansion and an improvement in the net interest margin from the corresponding period a year earlier, despite lower consolidated treasury segment profit.
Net interest income stood at 10,583 crore rupees in the quarter ended September 2026, according to figures cited by Moneycontrol in its coverage of the bank's results. That represented a year-on-year increase of 20.09%, with growth in this item identified in the coverage as one of the factors supporting the improvement in earnings during the period. Net interest income was 8,812 crore rupees in the corresponding quarter ended September 2025, the basis for the annual comparison of current performance. Alongside the rise in income, the net interest margin improved to 2.86% during the quarter, according to the same source, accompanying growth in interest income. The margin was 2.67% in the corresponding period a year earlier, before the improvement shown in the results for the second quarter of the current fiscal year.
In lending, the bank's total loans rose 18.53% year on year at the end of September 2026, according to results reported by the Financial Express. Total deposits grew 6.87% year on year as of the same date, increasing more slowly than the bank's loan portfolio. Within its credit business, lending to micro, small and medium-sized enterprises grew 22.39% compared with the end of September 2025, according to the newspaper, exceeding overall lending growth. On funding, management said it would prioritise attracting current and savings account deposits among its options for financing the business, according to Moneycontrol. That priority also includes retail term deposits, which management said it would favour alongside those accounts before turning to other funding channels.
On asset quality, Union Bank of India's gross non-performing loan ratio stood at 2.42% at the end of September 2026, according to figures cited by the Financial Express. The net non-performing loan ratio was 0.42% at the end of the same period, as the bank announced results for the second quarter of its fiscal year. Among capital indicators, the bank reported a capital adequacy ratio of 17.94% at the end of September, according to the newspaper, alongside the annual expansion in lending. The common equity tier 1 ratio rose to 16.05% as of the same date, showing an increase from its level at the end of the corresponding period a year earlier. That ratio stood at 14.37% at the end of September 2025, according to the annual comparison included in the newspaper's coverage of the bank's performance and financial indicators.
In the consolidated results, treasury segment profit fell to 1,299.55 crore rupees in the quarter ended September 2026, according to Business Standard. The segment's profit declined 20.4% year on year, while the bank's consolidated first-half profit increased from the corresponding period. Consolidated net profit for the first half of fiscal 2026–2027 reached 11,422.52 crore rupees, according to the newspaper, up 29% year on year. Consolidated profit was 8,853.90 crore rupees in the first half of fiscal 2025–2026, the corresponding comparison period. In the market, the bank's shares rose 4.36% during trading on 19 October 2026, the day the results were announced, according to the Financial Express, an intraday gain.
In comments on the bank's direction, Chief Executive Ashish Pandey said on 19 October 2026 that management was targeting a net interest margin of 3%. Moneycontrol quoted him as saying, "Our target is certainly to reach 3%," specifying the level the bank aims to achieve for this indicator. The next financial disclosure will cover results for the quarter and nine months ended December 2026, according to the investor calendar published on the bank's website. The calendar lists 31 January 2027 as the expected latest date for announcing those results, as part of the indicative schedule the bank provides for investors to track its financial disclosures. The anticipated announcement therefore falls after the end of the December period, with the date in the calendar remaining an indicative date for disclosure of the next results.