Union Bank of India Q3 FY26 results triggered a sharp rally in the stock, pushing it to a five-year high. The public sector lender reported a strong sequential jump in profit, supported by improving asset quality.
This matters for Indian investors because PSU banks continue to show balance-sheet strength and sustained profitability momentum.
Union Bank Q3 FY26 Net Profit Surges 18% Quarter-on-Quarter
Markets focused heavily on sequential performance this quarter. Union Bank delivered a strong profit expansion compared to the previous quarter.
The bank reported a standalone net profit of ₹5,017 crore for Q3 FY26.
This marks an 18.1% increase over the ₹4,249 crore reported in Q2 FY26. On a year-on-year basis, profit rose by 9% compared to Q3 FY25.
Crossing the ₹5,000 crore quarterly profit mark reflects a clear shift in earnings strength.
Asset Quality Improvement Drives Earnings Stability
The most critical improvement came from asset quality. Historically, stressed assets weighed on PSU bank valuations.
Union Bank’s Q3 FY26 numbers show a significantly cleaner loan book.
| Metric | Q3 FY26 | Q2 FY26 | Change |
|---|---|---|---|
| Net Profit | ₹5,017 Cr | ₹4,249 Cr | +18.1% |
| Gross NPA | 3.06% | 3.29% | Improved 23 bps |
| Net NPA | 0.51% | 0.55% | Improved 4 bps |
A Net NPA ratio close to 0.5% signals minimal stress and lower future provisioning risk.
Union Bank Share Price Hits Five-Year High
- The stock surged over 7% intraday on January 14, 2026.
- Shares crossed the ₹179–₹180 zone during the session.
- The move marked a fresh five-year high, supported by strong volumes.
Such breakouts, backed by earnings and asset-quality improvement, often indicate sustained institutional interest.
Banking sector performance remains under regulatory oversight by the Reserve Bank of India and SEBI, which continue to emphasise asset quality discipline.
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Frequently Asked Questions
Why did Union Bank shares rise sharply?
The stock rose after the bank reported strong sequential profit growth and improving asset quality.
Is Union Bank’s asset quality improving?
Yes. Gross and net NPA ratios declined further in Q3 FY26.
What should investors track next?
Investors should watch profit sustainability and credit growth momentum in Q4 FY26.
Key Takeaways
- Union Bank delivered strong Q3 FY26 profit growth
- Asset quality improved to multi-year lows
- The stock hit a fresh five-year high
Disclaimer
This article is for informational purposes only and does not constitute financial, tax, or legal advice. Please consult a qualified professional before making decisions.
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