Union Bank of India reported a 30% year-on-year rise in standalone net profit to ₹5,537 crore for the September quarter, supported by higher net interest income, improved margins and a sharp decline in provisions.
Mumbai, October 20 — Union Bank of India reported a 30% year-on-year increase in standalone net profit to ₹5,537 crore for the September quarter, compared with ₹4,249 crore a year earlier.
The public-sector lender’s net interest income rose 20% to ₹10,582 crore, reflecting stronger core banking income during the quarter. Provisions nearly halved to ₹701 crore from ₹1,397 crore in the year-ago period, which also supported profitability.
On a consolidated basis, Union Bank reported a 31% rise in net profit to ₹5,781 crore, compared with ₹4,425.95 crore in the same quarter last year.
The bank also saw an improvement in margins.
Its domestic net interest margin increased to 2.95%, compared with 2.87% in the previous quarter and 2.75% a year earlier. Global NIM improved to 2.86%.
Chief Executive Officer Asheesh Pandey said the bank aims to take its net interest margin above 3% by the next financial year.
He said the recent change in the interest-rate cycle, including the RBI’s 25-basis-point repo rate hike, could support further improvement in margins.
Union Bank’s total advances rose 19% year-on-year to ₹11.6 lakh crore during the quarter.
Domestic advances grew 17%, while the corporate loan book expanded 24% to ₹5.2 lakh crore. The bank also has a corporate loan pipeline of around ₹1 lakh crore.
The lender also mobilised around $2.3 billion through FCNR(B) deposits, with about 70% linked to loans extended to customers.
Asset quality improved further during the quarter. The bank’s net NPA ratio declined to 0.4% from 0.6% a year earlier.
Pandey said the bank maintains a strong provision buffer, with a provision coverage ratio of more than 95%. It also added another ₹200 crore to provisions during the quarter.
The combination of strong loan growth, higher core income, improving margins and lower credit costs helped Union Bank deliver a solid earnings performance in Q2 FY27.
