Union Bank of India reported a strong Q2 FY27, with net profit surging 30% year-on-year to ₹3,680 crore. The public sector bank also significantly improved its asset quality, reducing both gross and net Non-Performing Assets.
₹3,680 Crore
Net Profit
Q2 FY26: ₹2,831 Crore→₹3,680 Crore
⏳ Time Machine
How today’s news fits into the bigger picture
October 2015
RBI Initiates Asset Quality Review
The Reserve Bank of India (RBI) mandated an (AQR) for banks to identify and provision for stressed assets, leading to a surge in declared NPAs across the banking sector, especially for PSBs.
April 2018
RBI Imposes PCA Framework
Amid rising NPAs, the RBI placed several public sector banks, including Union Bank, under its Prompt Corrective Action (PCA) framework, imposing restrictions on lending and expansion to help them recapitalize and clean up balance sheets.
April 2020
Merger with Andhra Bank & Corporation Bank
Union Bank of India completed its merger with Andhra Bank and Corporation Bank, becoming one of the largest public sector banks in India. This consolidation aimed to enhance scale, efficiency, and market reach.
March 2023
Exit from PCA Framework
After significant improvement in financial metrics, Union Bank of India exited the RBI's PCA framework, signaling its return to health and allowing it greater operational freedom in lending and expansion.
Q2 FY26
Net Profit ₹2,831 Crore
In the corresponding quarter of the previous fiscal year, Union Bank reported a net profit of ₹2,831 crore, with a Gross NPA of 6.38% and Net NPA of 1.70%, indicating a solid foundation for further growth and asset quality improvement in the subsequent periods.
June 2026
Credit Growth Outperforms Peers
Union Bank reported strong provisional of over 11% for Q1 FY27, outpacing many public sector peers, driven by increased demand for retail and corporate loans, indicating a sustained positive momentum leading into Q2.
Today
Union Bank of India announced a 30% jump in Q2 FY27 net profit to ₹3,680 crore, with significant asset quality improvement.
What happens next?
The bank will focus on sustaining RAM sector growth and further improving asset quality, with Q3 FY27 results expected in January 2027.
Union Bank of India announced robust financial results for the second quarter of Fiscal Year 2027, with its net profit increasing by an impressive **30%** year-on-year to reach **₹3,680 crore**. The bank's Net Interest Income (NII), a key measure of profitability, also grew **15%** to ₹9,450 crore. Crucially, the bank demonstrated significant improvement in asset quality, with Gross Non-Performing Assets (NPA) falling to 4.98% from 6.38% a year ago, and Net NPA dropping to 1.35% from 1.70%. This strong performance reflects healthy credit growth and effective bad loan management.
💭 If you're wondering…
The Provision Coverage Ratio (PCR) indicates the extent to which a bank has set aside funds to cover potential losses from bad loans. A higher PCR, like Union Bank's 91.12%, means the bank is better prepared to absorb future defaults, enhancing its financial resilience.
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