Union Bank’s Profit Up 10% On Lower Provisions, IOB’s Net Up 56%
The standalone net profit rose 9 per cent to Rs 5,017 crore.
By : DC Correspondent
Update: 2026-01-14 20:19 GMT
Mumbai: State-owned Union Bank of India on Wednesday reported a 10 per cent year-on-year (y-o-y) increase in third-quarter (Q3FY26) consolidated net profit at Rs 5,073 crore, aided by a sharp fall in provisions. The standalone net profit rose 9 per cent to Rs 5,017 crore. Net profit in the reporting quarter was up 18 per cent on a sequential (quarter-on-quarter) basis over the preceding quarter’s Rs 4,249 crore. Another lender, Indian Overseas Bank, posted a 56 per cent year-on-year (YoY) rise in its net profit to Rs 1,365 crore in the December quarter of FY26, compared with Rs 873.6 crore in the same quarter of the previous year.
Union Bank’s net interest income (the difference between interest earned and interest expended) grew 0.95 per cent to Rs 9,328 crore (Rs 9,240 crore in the year-ago period), supported by lower credit growth of 7.13 per cent and a 0.15 per cent narrowing in the net interest margin to 2.76 per cent. On the other hand, Indian Overseas Bank’s domestic net interest margin (NIM) rose to 3.42 per cent in Q3FY26 from 3.35 per cent in Q2FY26.
Union Bank’s other income, including fee-based income, treasury income, recovery in written-off accounts, and interest on income-tax refunds, was up about 3 per cent to Rs 4,541 crore. As of December-end 2025, total deposits and advances increased 3 per cent y-o-y to Rs 12,22,260 crore and 7 per cent y-o-y to Rs 10,16,884 crore, respectively.