Union Bank of India Reports Q2 FY26 Results: Net Profit Down 10%, Asset Quality Improves

Union Bank of India released its financial results for the second quarter of the fiscal year. The bank has reported a decline in net profit but notable improvements in asset quality.

Financial Performance

The bank’s Q2 FY26 results show mixed trends:

• Net Profit: ₹42.50 billion, down 10% YoY from ₹47.20 billion
• Revenue: ₹266.50 billion, marginally lower than ₹267.00 billion in the previous year

Despite the decline in profitability, revenue remained largely stable, indicating resilience in core operations.

Asset Quality Improvement

Union Bank reported significant progress in asset quality metrics:

• Provisions for NPAs: ₹5.26 billion, down 54.3% from ₹11.52 billion in the previous quarter
• Gross NPA Ratio:29%, improved from 3.52%
• Net NPA Ratio:55%, down from 0.62%

The sharp reduction in provisions and improvement in NPA ratios reflect better credit risk management and recovery efforts.

Important Points

• Net profit declined 10% YoY to ₹42.50 billion
• Revenue remained stable at ₹266.50 billion
• Provisions for NPAs reduced by 54.3% quarter-over-quarter
• Gross NPA ratio improved to 3.29%
• Net NPA ratio decreased to 0.55%

Read More: New Banking Rules by RBI to Take Effect from November 1.

Conclusion

Union Bank of India delivered stable revenue and improved asset quality in Q2 FY26, despite a decline in net profit. The reduction in provisions and better NPA ratios signal progress in strengthening the bank’s balance sheet.

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