Union Bank of India Q2 Results: Net Profit Up 3.25% QoQ To Rs 4,249 Cr; Maintains Strong Asset Quality

Union Bank of India on Thursday reported stable financial performance for the September 2025 quarter, with total interest income at Rs 26,650 crore, down 2.36% quarter-on-quarter (QoQ) but up 1.64% year-on-year (YoY) to Rs 53,946 Cr from Rs 53,073 Cr in the September 2024 quarter. Non-interest income rose 11.37% QoQ to Rs 4,996 crore, though it declined 3.62% YoY to Rs 9,482 Cr in Q2FY26 from Rs 9,837 Cr in Q2FY25.

Interest expenditure stood at Rs 17,838 crore, down 1.90% QoQ but higher by 4.07% YoY. Operating expenses increased 4.55% QoQ to Rs 6,994 crore, reflecting business expansion.

Net interest income (NII) declined 3.29% QoQ to Rs 8,812 crore and down 2.90% YoY to Rs 17,925 Cr from Rs 18,459 Cr in Q2FY25, while operating profit eased slightly by 1.37% to Rs 6,814 crore. The bank's net profit improved 3.25% QoQ to Rs 4,249 crore, nearly stable on a YoY basis at Rs 8,365 Cr.

Ratio-wise, the cost of deposits dropped marginally to 5.48% and the Net Interest Margin (NIM) decreased to 2.67% from 2.76% in the prior quarter. Higher operating expenses were indicated by the cost-to-income ratio rising to 50.65% and yield on advances standing at 8.34%.

Return on Equity (RoE) was 15.08%, while Return on Assets (RoA) increased slightly to 1.16%. With Gross NPA falling to 3.29% and Net NPA at 0.55%, asset quality improved. While credit cost dropped to 0.22%, the Provision Coverage Ratio (PCR) was strong at 95.13%, indicating better credit management and steady profitability.

With total business at Rs 22,09,828 crore, marginally down by 0.21% from Rs 22,14,422 crore in June 2025, but showing a 3.24% year-on-year (YoY) rise from Rs 21,40,435 Cr. Savings deposits rose 1.31% to Rs 3,38,844 crore, while current deposits decreased 8.11% QoQ to Rs 63,010 crore. The domestic CASA ratio was 32.56%, marginally lower by 16 basis points YoY, while the CASA (Current Account Savings Account) balance was steady at Rs 4,01,854 crore.

The Credit-Deposit (CD) ratio improved 287 basis points YoY to 79.67% from 79.17% in June 2025. Retail advances jumped by 4.13% QoQ and a strong 23.98% YoY to reach Rs 2,38,506 crore. MSME advances improved 2.75% QoQ and 14.88% YoY to Rs 1,47,395 crore, while agriculture advances dropped 1.55% QoQ and 12.15% YoY to Rs 1,68,405 crore. With gross advances of Rs 9,75,207 crore, there was a modest 0.07% QoQ rise and a 4.99% gain over the prior year, suggesting that credit expansion is still on track.