Union Bank of India reports strong Q2 FY26 growth, profit surges

Union Bank of India reported a net profit of ₹4,249 crore for Q2 FY26, with interest income reaching ₹26,650 crore. The bank's total business expanded by 3.24% year-over-year, driven by a 4.99% rise in gross advances and a 1.90% increase in total deposits, accumulating to a total business mix of ₹22.10 trillion. Global deposits now stand at ₹12,34,621 crore.

The bank demonstrated strong growth in its Retail, Agri, and MSME (RAM) segments, which collectively grew by 8.14% year-over-year. This includes a 23.98% increase in Retail advances and a 14.88% rise in MSME advances, with RAM advances constituting 58.83% of domestic advances. Asset quality improved significantly, with gross NPA reducing by 107 basis points to 3.29% and net NPA by 43 basis points to 0.55% year-over-year. The Provision Coverage Ratio (PCR) improved by 234 basis points to 95.13%.

Capital adequacy remains strong, with CRAR at 17.07% and CET-1 ratio at 14.37% as of September 30, 2025. The bank also made strides in financial inclusion, sanctioning ₹724 crore across 4,086 applications under the Union Nari Shakti Scheme and advancing ₹32,520 crore to the Renewable Energy Sector. Digital initiatives have also seen significant traction, including 8 lakh+ users registered on the CBDC platform.