Union Bank Q2 Rally: Profit Jumps 30% to ₹5,537 Cr, Asset Quality Shines as Stock Surges

Public sector banking heavyweight Union Bank of India delivered an impressive financial performance for the second quarter of the fiscal year 2026-27, posting a 30.3 percent year-on-year surge in net profit to ₹5,537 crore compared to ₹4,249 crore in the corresponding quarter last year. The state-run lender's stellar quarterly show was underpinned by robust core operational income, disciplined balance-sheet management, and steady credit off-take across retail, agriculture, and MSME verticals.

The earnings performance comfortably beat Street estimates, showcasing resilient fundamental growth across state-run financial counters as Dalal Street's Q2 corporate earnings season gathers pace.

Robust NII Growth and Margin Expansion: Operating Profit Surpasses ₹8,100 Crore

The lender’s core income engine demonstrated solid momentum, with Net Interest Income (NII)—the spread between interest earned on advances and interest paid on deposits—climbing 20.1 percent year-on-year to touch ₹10,583 crore, compared to ₹8,812 crore recorded in the year-ago period.

Reflecting strong pricing power and controlled deposit costs, the bank’s Net Interest Margin (NIM) witnessed an expansion, rising from 2.80 percent to 2.86 percent. Operating profitability saw double-digit growth as well, with total operating profit increasing 19 percent year-on-year to reach ₹8,108 crore against ₹6,814 crore in the September quarter of the preceding fiscal year, further validating the bank's operational efficiency and expanding credit franchise.

Pristine Asset Quality and Market Rally: Stock Climbs Over 3% on Heavy Volumes

Complementing strong profitability, Union Bank recorded notable progress in asset quality, further insulating its balance sheet against credit stress. Gross Non-Performing Assets (GNPA) narrowed sequentially to 2.42 percent in the second quarter, down from 2.65 percent in the June quarter, while Net NPAs contracted from 0.47 percent to 0.42 percent quarter-on-quarter. Dalal Street rewarded the positive earnings scorecard immediately, with Union Bank of India’s stock advancing 3.34 percent in mid-day trade on Monday, October 19, 2026, to change hands around ₹177.75, up ₹5.75 from its previous close of ₹172.

The stock touched an intraday high of ₹180 with a volume-weighted average price (VWAP) of ₹177.11 and an intraday turnover of ₹17.27 crore. With a total market capitalization standing at ₹1,35,954.52 crore and a 52-week peak of ₹205.45, the state-run lender remains firmly positioned among top-performing PSU banking counters.