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Union Bank of India’s second quarter (Q2FY27) standalone net profit rose 30 per cent y-o-y to ₹5,537 crore, on the back of a decent increase in net interest income and a decline in provisions & contingencies.

India’s fifth largest public sector bank, which logged a net profit of ₹4,249 crore in the year ago period, reported a robust 19 per cent growth in advances. Deposit growth at 7 per cent, however, lagged advances growth.

Net interest income (interest income less interest expended) was up 20 per cent yoy to ₹10,582 crore (₹8,813 crore in Q2FY26).

Other income, comprising commission income from non-fund based banking activities, fees, earnings from forex and derivative transactions, profit and loss (including revaluation) from investments, and recoveries from accounts previously written off, declined 7 per cent yoy to ₹4,651 crore (₹4,996 crore).

This is mainly due to treasury income and recovery in written-off accounts dipping 35 per cent yoy (to ₹701 crore) and 19 per cent yoy (to ₹740 crore), respectively.

Global and domestic net interest margin (NIM) improved to 2.86 per cent in the reporting quarter (from 2.67 per cent) and 2.95 per cent (from 2.75 per cent). Asheesh Pandey, MD & CEO, noted that the increase in repo rate will have a beneficial impact on the NIM.

Provisions & Contingencies (other than tax) was down 50 per cent yoy to ₹701 crore (₹1,397 crore). Within this, non-performing assets (NPA) provisions rose 13 per cent yoy to ₹596 crore and other standard asset provisions were at ₹200 crore (nil year ago).

The Bank received a write-back of ₹135 crore from standard assets provisions (it made a ₹882 crore provision in the year ago quarter). Tax expense rose 60 per cent yoy to ₹1,870 crore (₹1,168 crore).

Gross non-performing assets (NPAs) position improved to 2.42 per cent of gross advances as at September-end 2026 against 3.29 per cent as at September-end 2025. Net NPAs position too improved to 0.42 per cent of net advances against 0.55 per cent.

Pandey emphasised that the stress book, comprising special mention accounts (at ₹2,282 crore) and restructured accounts (₹3,701 crore under resolution framework 1.0 and at ₹2,790 crore under resolution framework 2.0) are at the lowest in the last five years.

Total deposits grew 7 per cent yoy to stand at ₹13,19,455 crore as at September-end 2026. Low-cost current account, savings account (CASA) deposits increased to 34.93 per cent of domestic deposits as of September 30, 2026 from 32.56 per cent as of September 30, 2025.

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