Union Bank of India's Q2 FY27 numbers came in strong, with revenue of Rs. 32,809.29 Cr (+5.20% YoY) and PAT growth of +30.30% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 19, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 32,809.29 Cr (+5.20% YoY) |
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| PAT (Q2) | Rs. 5,537.20 Cr (+30.30% YoY) |
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| EBITDA margin | 24.71% (+286 bps YoY) |
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| Market cap | Rs. 135,076.61 Cr |
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| CMP | Rs. 176.95 |
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Quarter Snapshot
Union Bank delivered 30.30% YoY PAT growth to Rs.5,537 Cr on 19.43% advances growth that exceeded its own 13-14% FY27 guidance, with GNPA down 87 bps to 2.42% and cost-to-income improving 388 bps to 46.78%. Execution against stated targets was broad-based — CD ratio, PCR, credit cost, and bond shedding all on track — though deposit growth of 6.87% lags advances by 12.56 pp and remains the key funding-side watch item for H2.
Key Investment Insights
Key Positives
- Net profit grew 30.30% YoY to Rs.5,537 Cr; consolidated net profit grew 30.59% YoY to Rs.5,781 Cr
- Advances grew 19.43% YoY, exceeding management's 13-14% FY27 credit growth guidance
- GNPA improved 87 bps YoY to 2.42% and NNPA improved to 0.42%; PCR maintained at 95.20%
- Cost-to-income improved 388 bps YoY to 46.78% as opex grew 1.88% vs NII growth of 20.08%
- Operating profit grew 18.99% YoY to Rs.8,108 Cr with operating margin up 286 bps to 24.71%
- Corporate/Wholesale segment PBT nearly doubled (+98.26% YoY) with margin expanding 1,003 bps to 22.88%
- Retail Banking segment PBT grew 56.17% YoY with margin up 597 bps to 20.07%
- Rs.1,850 Cr of high-cost Basel III bonds redeemed in H1 FY27 against the Rs.2,500 Cr shedding target; Rs.1,000 Cr contingency buffer built ahead of ECL transition
Risk Factors
- Deposit growth of 6.87% YoY lagged advances growth of 19.43% by 12.56 pp, below the credit-minus-2% guidance
- CD ratio at 85.86% sits at the upper end of the 85-86% target, with borrowings up 48.10% YoY funding the gap
- Other income declined 6.90% YoY to 4,65,102 Lakh
- Treasury Operations revenue declined 9.74% YoY and segment result fell 20.46% YoY on rate cuts
- Effective tax rate rose to 25.25% from 21.56% YoY
- H1 recoveries in write-offs of Rs.1,483 Cr require Rs.3,000-3,500 Cr in H2 to meet the Rs.4,500-5,000 Cr FY27 target