Union Bank of India Q2FY26 Results Highlight Strong Growth and Improved Asset Quality

Mumbai, October 30, 2025: According to the Union Bank of India Q2FY26 Results, the bank has posted a net profit of ₹4,249 crore for the quarter ending September 30, 2025. In addition, interest income reached ₹26,650 crore, reflecting the bank’s steady momentum despite challenging market conditions. Overall, the figures show a resilient and growth-focused performance.

Steady Business Growth and Expanding Deposit Base

As per the Union Bank of India Q2FY26 Results, the bank’s total business grew by 3.24% year-on-year (YoY) to ₹22,09,828 crore. Moreover, gross advances climbed 4.99% YoY, while total deposits rose 1.90% YoY, amounting to ₹12,34,621 crore as of September 30, 2025.

Furthermore, the savings and retail segments maintained a positive trajectory, ensuring balanced growth across customer categories. This consistent performance reflects the bank’s effective strategy to strengthen both deposits and advances.

Retail, Agriculture, and MSME Segments Drive Growth

Growth in the Retail, Agriculture, and MSME (RAM) sectors remains one of the standout features of this quarter. The segment expanded 8.14% YoY, with retail loans soaring 23.98% and MSME advances up by 14.88%.

In addition, the RAM portfolio now represents 58.83% of total domestic advances, showing that Union Bank of India continues to prioritize sectors that directly support small businesses, farmers, and individuals. Consequently, the bank is making progress toward inclusive growth and economic empowerment.

Improved Asset Quality and Decline in NPAs

Encouragingly, the Union Bank of India Q2FY26 Results indicate a significant drop in non-performing assets (NPAs). Gross NPA fell by 107 basis points (bps) to 3.29%, while Net NPA declined by 43 bps to 0.55%.

This remarkable improvement highlights effective recovery efforts and prudent risk management. In addition, the Provision Coverage Ratio (PCR) improved to 95.13%, further strengthening the bank’s balance sheet.

Robust Capital Position and Improved Returns

Union Bank of India continues to maintain a solid capital position. The Capital to Risk-Weighted Assets Ratio (CRAR) stood at 17.07%, while the CET-1 ratio improved to 14.37%.

At the same time, profitability remained healthy. The Return on Assets (RoA) reached 1.16%, and the Return on Equity (RoE) stood at 15.08%, reflecting efficient capital utilization and stable earnings growth.

Key Financial Ratios Show Consistency

Some key financial ratios underline the bank’s overall stability:

• Net Interest Margin (NIM): 2.67%
• Cost of Deposits: 5.48%
• Yield on Advances: 8.34%
• Credit Cost: 0.22%

Although NIM showed a slight dip, cost efficiency and profitability remain under control. Moreover, continuous monitoring of asset quality ensures that the bank stays on a sustainable path.

Wider Network and Digital Outreach

The bank’s growing presence is evident across India and abroad. Currently, Union Bank of India operates:

• 8,655 branches (including foreign branches)
• 9,064 ATMs
• 25,777 Banking Correspondent (BC) Points

Additionally, there are 138 MSME Loan Points, 143 Retail Loan Points, and 70 Agriculture Loan Points. With such a vast network, the bank continues to improve customer accessibility and enhance service delivery nationwide.

Financial Inclusion Through Government Schemes

Union Bank of India plays a crucial role in advancing government-backed financial inclusion initiatives. These schemes are helping millions gain access to affordable banking services.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

A total of 5.12 lakh new enrollments were completed in Q2FY26.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

The bank added 17.86 lakh new policyholders, promoting financial safety and security.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

So far, 3.33 crore accounts have been opened, holding a total balance of ₹13,864 crore—a notable rise from ₹10,929 crore last year.

Atal Pension Yojana (APY)

An additional 2.70 lakh individuals enrolled during the quarter, enhancing pension coverage for unorganized sector workers.

Women Empowerment and Green Financing Initiatives

Union Nari Shakti Scheme

Under the Union Nari Shakti Scheme for Women Entrepreneurs, 4,086 applications worth ₹724 crore were sanctioned during Q2FY26. This initiative continues to empower women-led enterprises nationwide.

Green Financing Initiatives

To support India’s sustainability goals, the bank has sanctioned:

• ₹32,520 crore for the Renewable Energy Sector
• ₹1,318 crore under the Union Green Miles program

These green finance initiatives showcase the bank’s dedication to promoting an eco-friendly and sustainable future.

Sustained Momentum and Inclusive Growth

In conclusion, the Union Bank of India Q2FY26 Results clearly demonstrate the bank’s strong financial footing, improved asset quality, and inclusive growth approach. With steady profits, declining NPAs, and focused support for key sectors, the bank continues to move in the right direction.

Furthermore, its commitment to sustainability, women empowerment, and financial inclusion positions Union Bank of India as one of the most progressive public sector banks in the country.

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