Union Bank of India reported a 30% year-on-year rise in net profit for the second quarter, reaching ₹5,537 crore. The state-run lender's growth was driven by a 22.39% surge in MSME loans and better asset quality. Following the results, the stock rose nearly 5% on the NSE as the gross NPA ratio fell to 2.42%.
Union Bank of India has reported a significant financial improvement for the quarter ended September 30, 2026, with net profit rising by nearly 30% year-on-year to ₹5,537 crore. Following the release of these results, the bank’s stock price rose by 4.74% to ₹179.82 on the National Stock Exchange, reflecting positive investor sentiment.
The bank's overall business scale grew to ₹24.75 lakh crore, marking a 12% increase compared to the same period in the previous year. Growth was largely supported by a rise in gross advances, which reached ₹11.56 lakh crore. Within this portfolio, the micro, small, and medium enterprise (MSME) segment stood out, recording a growth rate of 22.39%. Deposits also showed steady progress, increasing by 6.87% to reach ₹13.19 lakh crore.
A key highlight of the performance was the improvement in asset quality. The bank's gross non-performing asset (NPA) ratio dropped by 87 basis points to 2.42%, while the net NPA ratio settled at 0.42%. This decline in bad loans is supported by a strong provisioning coverage ratio of 95.20%, which provides a buffer against potential credit losses.
On the capital front, the bank maintained a stable position with a Capital to Risk (Weighted) Assets Ratio (CRAR) of 17.94%. The Common Equity Tier 1 (CET-1) ratio, a key metric for financial strength, improved to 16.05%, up from 14.37% a year ago. These ratios suggest the bank has sufficient capital to support its future lending activities.
The bank is also focusing on sustainable finance as part of its long-term strategy. It has sanctioned ₹39,110 crore for various renewable energy projects under its Union Green Miles initiative. With over 8,700 branches, the institution is looking to expand its reach while maintaining this growth trajectory.
Looking ahead, investors may focus on whether the bank can maintain its momentum in the MSME loan segment and whether the current improvement in asset quality persists despite broader economic cycles. The bank’s ability to manage its interest margins and credit costs will remain an important area for monitoring in upcoming quarters.