Union Bank of India Q2 FY26 Net Profit Slips 6.8% YoY to ₹4,426 Crore; Shares Fall 3.3%

Mumbai, October 30, 2025: The share price of Union Bank of India (NSE: UNIONBANK, BSE: 532477) fell 3.31% to ₹141.29 as of 2:09 PM after the lender reported a 6.8% year-on-year (YoY) decline in consolidated net profit for Q2 FY26. The bank posted a net profit of ₹4,425.9 crore for the quarter ended September 30, 2025, compared to ₹4,750.9 crore in the same period last year. Sequentially, profit remained largely flat at ₹4,427.9 crore reported in the June quarter, as strong operational performance was offset by rising funding costs

Key Financial Highlights

Union Bank of India’s total income stood at ₹ 32,21,511 lakhs for Q2 of FY 2025-26, slightly down from ₹ 32,34,393 lakhs in the quarter ended June 2025 and ₹ 32,81,212 lakhs in the corresponding period of the preceding year.

Interest earned decreased marginally to ₹26,66,481 lakh from ₹27,47,493 lakh in Q1 FY26 and ₹26,88,658 lakh in Q2 FY25. Interest likewise stood at ₹17,70,689 lakh, marginally lower than ₹17,71,994 lakh a year ago, and down 2.9% sequentially.

The operating profit of the bank was ₹ 6,84,479 lakh, a decline of 16% year-on-year and 1.3% over the previous quarter. Provisions and contingencies were lower by 19.9% YoY and 16.5% QoQ at ₹1,39,228 lakh.

Consequently, the profit before tax was ₹5,45,251 lakh, down 14.9% YoY, but up 3.5% compared to the previous quarter. The net profit stood at ₹4,42,595 lakh versus ₹4,42,794 lakh in Q1 FY26 and ₹4,75,093 lakh in Q2 FY25, down 6.8% year-over-year and flat quarter-over-quarter. The bank reported a net profit of ₹8,85,389 lakh for the first half of the current FY26, up 5.5% from ₹8,39,271 lakh in the same period last year.

Operational Performance

Total income stood at ₹32,215 crore, showing a marginal decline from the previous year. Interest income eased 0.8% year-on-year (YoY) to ₹26,664.8 crore, impacted by tighter lending spreads and deposit repricing pressures. Other income fell to ₹5,550.3 crore from ₹5,925.5 crore a year earlier, primarily due to lower treasury gains.

Operating expenses rose 10.3% YoY to ₹7,663.4 crore, driven by higher staff and administrative costs. However, provisions dropped sharply to ₹1,392.3 crore from ₹1,739 crore, helping stabilise the bottom line despite a contraction in operating margins. Operating profit came in at ₹6,844.8 crore, down 16% YoY, though the reduced provisioning helped cushion the overall profitability impact.

Share Price Update

The shares of Union Bank of India were trading at ₹141.29 as of 2:09 PM, a fall of 3.31%. Union Bank of India stock has risen 21% in the past year, 14% year-to-date, 12.33% in the last six months, and 2% in the previous month.

Shares of Union Bank of India Ltd opened at ₹146.40 on Thursday and traded between ₹150.80 and ₹140.80 during the session. The public sector lender’s market capitalisation stood at ₹1.08 lakh crore. The stock is currently valued at a P/E ratio of 5.73 and offers a dividend yield of 3.36%, with a quarterly dividend payout of ₹1.19 per share. Over the past year, the share has touched a 52-week high of ₹158.65 and a low of ₹100.81.

REF: https://nsearchives.nseindia.com/corporate/UNIONBANK_30102025122439_Results_UnionBank_Sep_2025.pdf

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