1. Opening Hook
Union Bank’s Q2 call felt like watching a veteran cricketer return to the crease—calm, composed, and fully believing the opponent is the pitch, not the bowler. While the broader banking system sprints at 11% credit growth, UBI jogs at a chilled 5%, insisting “bas sab theek ho jayega” once bulk deposits stop haunting the margins.
MD & CEO Asheesh Pandey—freshly returned like a hero in a 90s Bollywood sequel—wrapped it with optimism, hinting at revival, discipline, and “strategy documents” (aka corporate holy scriptures). As the Bhagavad Gita says, “Action is thy duty, reward is not thy concern.” UBI seems to be living that line a bit too literally.
Stick around—stuff gets spicier as numbers start arguing with strategy.
2. At a Glance
- Net Profit – ₹4,249 Cr – Up Q-o-Q, proving accounting is still their favorite sport.
- Operating Profit – ₹6,814 Cr – Respectable, like a student scoring 70 without studying.
- NIM – 2.67% – Stable but low enough to make NBFCs giggle.
- Gross NPA – 3.29% – Down 107 bps; looks moisturized and well-behaved.
- Net NPA – 0.55% – Cleaner than most politicians’ affidavits.
- Credit Growth – 5% – The system runs, UBI strolls.
- Deposits – 2% growth – The CFO calls it “strategic,” Excel calls it “slow.”
- Slippages – 0.91% – Controlled, like a parent watching kids near firecrackers.
3. Management’s Key Commentary
Quote: “We have cautiously curtailed 21.85% of high-cost bulk deposits.”
(Translation: We broke up with expensive relationships to fix our margins.)
Quote: “Retail + CASA grew ₹1.03 lakh crore.”
(Translation: The real heroes—salary accounts and aunties’ FDs—saved the day.)
Quote: “NIM of 2.67% will stabilize and improve if RBI doesn’t troll us with more cuts.”
(Translation: We’re praying to the Rate Cut Gods. 🙏)
Quote: “Credit cost reduced to 22 bps vs 109 bps YoY.”
(Translation: Fewer fires to extinguish—fire brigade staff now sipping tea. 😏)
Quote: “We aim for 9–10% growth going ahead.”
(Translation: We know we’re late to class; we promise to sprint now.)
Quote: “ECL provisioning impact is manageable; we’ve been practising for 2.5 years.”
(Translation: RBI won’t surprise us—because we already scared ourselves in advance.)
Quote: “Asset quality is improving; recoveries > slippages by ₹1,800 crore.”
(Translation: Collections team finally winning their long-running battle.)
Quote: “Loan yield fell because some low-yield loans refused to die.”
(Translation: Old loans cling to the balance sheet like relatives after a wedding.)
Quote: “Corporate loans will be selective, RAM will cross 58%.”
(Translation: Retail is our new crush; corporates are now arranged-marriage territory.)
4. Numbers Decoded
Metric | Q2 FY26 | YoY Change | One-Line Analysis
---------------------------|------------------|------------|-------------------------------
Net Profit | ₹4,249 Cr | +??% | High-quality jugaad + discipline.
Operating Profit | ₹6,814 Cr | Stable | Solid, not spectacular.
NIM | 2.67% | -9 bps QoQ | RBI’s scissors still sharper.
Gross NPA | 3.29% | -107 bps | Cleanup drive continues.
Net NPA | 0.55% | -43 bps | Sanitized balance sheet vibes.
Credit Growth | 5% | Weak | Needs Red Bull.
Deposit Growth | 2% | Flat | Bulk deposits detox underway.
Slippages | 0.91% | Much lower | Borrowers behaving (temporarily).
Provisioning (Std Assets) | ₹800+ Cr | Higher | Prepping for ECL like a board exam.
PCR | 95.13% | Strong | More cushioning than a luxury sofa.
Bottom line: Quality improved; growth forgot to attend the meeting.
5. Analyst Questions
Analyst: “Loan growth is half the system. When will UBI catch up?”
Mgmt Translation: “Soon. Maybe faster than the system. But don’t ask for a deadline.”
Analyst: “NIM is falling—strategy seems mismatched with numbers?”
Mgmt Translation: “Bulk deposit exit happened late. Chill. Magic shows from Q3.”
Analyst: “Why ₹800+ Cr standard asset provisions?”
Mgmt Translation: “ECL is coming. We’re building fat reserves before winter.”
Analyst: “Treasury profits fell sharply. Problem?”
Mgmt Translation: “Last
