Union Bank Reports 30% Increase in Q2 PAT, Shares Surge 5%
Union Bank of India sees a significant rise in its stock price following a strong quarterly performance, with a notable increase in profit and improved asset quality.
Union Bank's Q2 profit after tax reached ₹5,537 crore, a 30.31% YoY increase.
The bank's gross non-performing asset ratio decreased to 2.42%, indicating improved asset quality.
Union Bank shares rose 5% in intraday trading, outperforming the BSE Sensex.
Shares of Union Bank of India experienced a notable increase of over 5% during intraday trading on Monday, following the announcement of its second-quarter earnings for the financial year 2026-27. The stock peaked at ₹181.05 on the Bombay Stock Exchange (BSE), reflecting a gain of 5.3% from the previous closing price of ₹172. By 1:33 PM, the stock was trading at ₹180, up 4.65%, with over 30 million shares exchanged across BSE and NSE combined.
Year-to-date, Union Bank's stock has appreciated by 17%, and it has risen by 32% over the past year, significantly outperforming the BSE Sensex, which has declined by 13% year-to-date and 12% over the last year. This performance is attributed to the bank's robust financial results, which were disclosed in an exchange filing.
In its Q2 results, Union Bank reported a profit after tax (PAT) of ₹5,537 crore, marking a 30.31% increase compared to ₹4,249 crore from the same quarter last year. Additionally, the bank's net interest income (NII) rose by 20% to ₹10,582 crore, up from ₹8,813 crore in the previous year. The total business of the bank also saw a 12.01% increase year-on-year, with gross advances growing by 18.53% and total deposits increasing by 6.87%.
The bank's asset quality has shown improvement, with the gross non-performing asset (NPA) ratio decreasing by 87 basis points year-on-year to 2.42%. The net NPA also fell by 13 basis points to 0.42%. The Return on Assets (RoA) and Return on Equity (RoE) for Q2FY27 stood at 1.38% and 17.21%, respectively, indicating strong operational efficiency.
Looking ahead, analysts suggest that the stock is currently facing resistance around the ₹188-190 range. A decisive breakout above this level could lead to further gains. Immediate support is identified at the ₹174-175 zone, aligning with the 200-day moving average, while stronger support is noted at ₹165, marking the swing low of the current rally. Investors are advised to monitor these levels closely as the stock continues to perform strongly in the market.
