Union Bank of India (UNIONBANK) Q2 25/26 earnings summary

Executive summary

• Management emphasized sustainable growth, balancing top-line expansion with bottom-line strength, and highlighted ongoing digital transformation, including Vyom 2.0 and CBDC platform launches.

• The bank is shifting its portfolio mix toward retail, agriculture, and MSME (RAM) segments, aiming to increase RAM share from 55% to 58% for diversification and margin improvement.

• Leadership transition was addressed, with the new MD & CEO outlining plans for accelerated growth and enhanced digital initiatives.

• Global business mix reached ₹22.10 trillion, with advances at ₹9.75 trillion and deposits at ₹12.35 trillion as of September 2025.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were reviewed and approved by the Board on October 30, 2025.

Financial highlights

• Net profit for Q2 FY26 was ₹4,249 crore (₹4,24,908 lakh), with H1 FY26 net profit at ₹8,36,461 lakh (standalone) and ₹8,41,784 lakh (consolidated).

• Operating profit for Q2 FY26 stood at ₹6,814 crore; H1 FY26 at ₹13,723 crore, down 13.68% YoY.

• Net Interest Income for Q2FY26 was ₹8,812 crore, with a six-month NII of ₹17,925 crore, down 2.9% YoY.

• Non-interest income grew 11.37% YoY; retail lending grew 23.98% YoY; MSME lending up 14.88% YoY.

• Total deposits grew 1.9% YoY; advances grew 4.99% YoY.

Outlook and guidance

• Management aspires to achieve system-level loan growth (currently at 11%) by March 2026, with quarterly growth converging to or exceeding industry averages.

• NIM is expected to stabilize or improve from Q3 onwards, assuming no further rate cuts.

• The bank is preparing a rolling strategy document for 1, 3, and 5 years, with regular reviews and mid-course corrections.

• Continued emphasis on digital transformation, asset quality improvement, and prudent provisioning.

• No deviations or variations in the use of funds raised through equity or debt securities.