Important StoriesFM blames excess liquidity for equity market underperformanceUS holiday orders fall 25-30% for Indian garment exportersFarm loans lose share in banks’ credit books as lenders turn cautious on rural exposureCERT-In agent alert: Organisations lacked basic cyber controls, some not aware of incident, say authoritiesConsumer durables see strong demand momentum led by premium segment, EMI schemes this NavratriFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. Union Bank of India’s Q2 net profit rises 30% to ₹5,537 crore NII grows 20% y-o-y as provisions nearly halve and asset quality improves in September quarter By BL Mumbai Bureau Updated - October 19, 2026 at 04:02 PM. | Mumbai ×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/union-bank-of-indias-q2-net-profit-rises-30-to-5537-crore/article71602507.eceCopy Union Bank of India’s standalone net profit increased 30.32 per cent to ₹5,537.2 crore in the second quarter of fiscal 2027, as provisions dipped in the quarter ended September 2026 compared with ₹4,249.1 crore in the year-ago period. Sequentially, the bank’s PAT increased 3.84 per cent from ₹5,332.3 crore in Q1FY27.

The bank’s net interest income (NII) increased 20.1 per cent to ₹10,582.7 crore in the reporting quarter on a year-on-year (y-o-y) basis. In the corresponding period of the previous fiscal, NII was ₹8,812.37 crore. The NII performance was also 5.4 per cent better than the first quarter of the current fiscal, when the indicator was ₹10,037.23 crore. The bank’s net interest margin (NIM) increased 19 basis points to 2.86 per cent in the quarter ended September 2026 from 2.67 per cent in the year-ago period.

Gross advances increased 18.53 per cent to ₹11.56 lakh crore in the reporting quarter as against ₹9.75 lakh crore. Sequentially, advances increased just about 5.4 per cent from ₹10.9 lakh crore in the previous quarter. Deposits increased just 6.9 per cent to ₹13.19 lakh crore from ₹12.34 lakh crore in the corresponding period last year. Deposits increased just about 2.8 per cent from ₹12.83 lakh crore. The bank collected $2.25 billion in FCNR(B) deposits, with 70 per cent of it leveraged.

The bank’s PAT got a significant boost by almost halving provisions down to ₹700 crore in the recently concluded quarter, as against ₹1,396.7 crore in the corresponding period last fiscal. Provisions also fell 28.45 per cent from the previous quarter, when the bank set aside ₹979.4 crore.

The bank’s non-performing assets (NPA) as a share of gross advances reduced to 2.4 per cent in the reporting quarter from 3.29 per cent on a y-o-y basis, signalling better asset quality. Its net NPA also reduced to 0.42 per cent in Q2FY27 from 0.55 per cent in the same quarter last fiscal.

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