New Delhi: State-owned Union Bank of India has reported a 31% year-on-year increase in consolidated net profit to Rs 5,781 crore for the second quarter of FY27, supported by higher net interest income and an improvement in asset quality.
The bank had posted a consolidated net profit of Rs 4,425.95 crore in the corresponding quarter of the previous financial year.
Follow The PSUWatch Channel on Whatsapp
On a standalone basis, net profit rose 30.32 percent to Rs 5,537.20 crore in Q2 FY27, compared with Rs 4,249.08 crore in the year-ago period.
Net interest income (NII), the difference between interest earned and interest expended, increased 20.09 percent to Rs 10,583 crore during the July-September quarter, against Rs 8,812 crore in Q2 FY26. On a sequential basis, NII grew 5.43 percent.
The bank's domestic net interest margin (NIM) improved to 2.95 percent in Q2 FY27, compared with 2.87 percent in the preceding quarter and 2.75 percent a year earlier. Global NIM stood at 2.86 percent as of September 30, 2026, against 2.67 percent a year ago.
However, non-interest income declined 6.90 percent year-on-year to Rs 4,651 crore from Rs 4,996 crore, primarily due to lower treasury income. Treasury income fell 34.60 percent to Rs 701 crore during the quarter, compared with Rs 1,073 crore in the corresponding period last year.
On the business front, the bank's global deposits increased 6.87 percent year-on-year to Rs 13.19 lakh crore. Domestic deposits also grew 6.88 percent to Rs 13.19 lakh crore, against Rs 12.34 lakh crore a year earlier.
Follow PSU Watch on LinkedIN
The share of low-cost current account and savings account (CASA) deposits improved to 34.93 percent from 32.56 percent in the year-ago quarter.
Domestic advances grew 17.35 percent year-on-year to Rs 11.06 lakh crore in Q2 FY27, compared with Rs 9.42 lakh crore in the corresponding quarter of FY26.
Advances to the retail, agriculture and MSME (RAM) segments increased 14.65 percent to Rs 6.36 lakh crore. Within the segment, MSME advances recorded the highest growth of 22.39 percent to Rs 1.80 lakh crore. Retail advances rose 11.24 percent to Rs 2.65 lakh crore, while agriculture advances increased 12.71 percent to Rs 1.90 lakh crore.
The bank also reported an improvement in asset quality during the quarter. The gross non-performing asset (NPA) ratio declined to 2.42 percent as of September 2026 from 3.29 percent a year earlier. The net NPA ratio eased to 0.42 percent from 0.55 percent over the same period.
The provision coverage ratio improved marginally to 95.20 percent from 95.13 percent, indicating a higher level of provisioning coverage against bad loans.
(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated.)