Union Bank of India rallies after Q2 PAT climbs 30% YoY to Rs 5,537 cr

Union Bank of India surged 5.17% to Rs 180.90 after the bank?s standalone net profit jumped 30.32% to Rs 5,537.20 crore on 5.2% increase in total income to Rs 32,809.29 crore in Q2 FY27 compared with Q2 FY26.

Net interest income (NII) increased 20.09% year-on-year to Rs 10,583 crore. The bank's net interest margin (NIM) improved to 2.86% as of 30 September 2026, compared with 2.67% a year earlier.

The bank's global business grew 12.01% year-on-year to Rs 24,75,330 crore during the quarter. Global advances increased 18.53% to Rs 11,55,876 crore, while global deposits rose 6.87% to Rs 13,19,455 crore.

The retail, agriculture and MSME (RAM) segment recorded 14.65% growth year-on-year to Rs 6,35,527 crore. Within the segment, retail advances grew 11.24%, while MSME advances increased 22.39%. RAM advances accounted for 57.47% of the bank's domestic advances.

Asset quality also improved during the quarter. Gross non-performing assets (NPAs) declined to Rs 27,916.21 crore as of 30 September 2026, compared with Rs 32,085.13 crore a year earlier and Rs 29,092.72 crore as of 30 June 2026.

The gross NPA ratio fell by 87 basis points year-on-year to 2.42%, while the net NPA ratio declined by 13 basis points to 0.42%.

The bank's capital adequacy ratio (CRAR) stood at 17.94% as of 30 September 2026. The Common Equity Tier 1 (CET-1) ratio improved to 16.05% from 14.37% a year earlier.

Union Bank of India is engaged in the business of treasury operations, corporate and wholesale banking, retail banking operations, and other banking operations.

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