By Admin 
Union Bank of India Q2 Result: Public sector Union Bank of India has released the results for the July-September quarter of the current financial year 2025-26. During this period, the net profit of the bank declined to Rs 4,249 crore, which is about 10% less as compared to the same period last year.
Reason for decline in profits
According to news agency PTI, the bank said that there was pressure on profits due to decline in main income and decline in recovery from written off accounts. Net interest income (NII) declined by 2.6% to Rs 8,812 crore in the quarter under review. Loan growth rate remained less than 5%, while Net Interest Margin (NIM) declined to 2.67% from 2.90% last year.
The newly appointed Managing Director and CEO of the bank, Ashish Pandey, says that now our focus will be on maintaining the balance between topline growth and profit stability. He said that the bank will continue to grow rapidly in retail loans and aims to grow the total loan book by 8-10% in the financial year 2025-26.
Other Income declined by 6.24% on annual basis to Rs 4,996 crore. Profit from sale of investments declined by 70% to Rs 192 crore. Recovery also declined by 36% and stood at Rs 913 crore. Total provisions declined from Rs 3,393 crore to Rs 2,565 crore. However, the provision for standard assets has been increased to Rs 882 crore.
corporate loan policy
The bank’s CFO Avinash Prabhu said the bank increased large corporate loans by just 1% because the interest rates demanded by borrowers were not in line with the bank’s policy. The bank’s focus is now on sustainable profitability, not on aggressive loan growth. Recovery and decline in other income are having a direct impact on profits. Growth recovery is expected from retail loans. If credit growth and NIM improve in the coming quarters, the bank’s profitability may strengthen again.
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