Union Bank of India (UNIONBANK) is currently the talk of the stock market. The public sector lender has reported a strong performance for the third quarter of the financial year 2025-26 (Q3 FY26), leading to a massive surge in its share price.
Following the official announcement of the results mid-January, the bank’s stock touched a record high, crossing the ₹180 mark. Investors are cheering the bank’s ability to clean up bad loans and increase its profit margins.
This article breaks down the key numbers from Union Bank’s Q3 report, why analysts are giving it a “Buy” rating, and what this means for shareholders.
Key Highlights of Q3 FY26 Results
The December quarter (October–December 2025) has proven to be excellent for Union Bank of India. Here are the official numbers that have excited the market:
- Net Profit Surge: The bank reported a net profit of ₹5,017 crore. This is a jump of approximately 18% compared to the previous quarter (QoQ).
- Asset Quality Improved: The most positive sign for any bank is a reduction in bad loans. Union Bank’s Gross NPA (Non-Performing Assets) dropped to 3.06%, down by 23 basis points from the last quarter.
- Net NPA: The Net NPA, which reflects the actual risk after provisions, has fallen to a very healthy 0.51%.
- Business Growth: The bank’s total global deposits grew to over ₹12.2 lakh crore, showing that customers continue to trust the bank with their savings.
Why is the Share Price Rising?
On Tuesday, January 20, 2026, Union Bank shares were trading actively around the ₹177–₹180 level. There are three main reasons for this bullish trend:
- Analyst Upgrades: Leading brokerage firm Anand Rathi has issued a “Buy” rating on Union Bank, setting a fresh target price of ₹208 for the next 12 months.
- Retail Growth: The bank witnessed a strong 11.5% growth in its RAM (Retail, Agriculture, and MSME) portfolio. This means the bank is lending more to common people and small businesses, which is safer and more profitable than large corporate loans.
- Sector Rally: The entire PSU Banking sector is currently performing well, and Union Bank is leading the charge with its improved balance sheet.
Dividend and Future Outlook
With such strong profits, shareholders are now hopeful for a good dividend payout at the end of the financial year (March 2026).
The bank is also focusing heavily on digital banking and green financing. In Q3 alone, Union Bank sanctioned over ₹34,000 crore in credit towards renewable energy projects.
What should investors do? Market experts suggest that while the stock is at an all-time high, the long-term outlook remains positive due to the low NPA levels. However, new investors are advised to watch for small dips before making a bulk purchase.
Frequently Asked Questions (FAQs)
Q1: What was Union Bank’s net profit in Q3 2026?
Union Bank of India reported a net profit of ₹5,017 crore for the quarter ending December 31, 2025.
Q2: What is the new target price for Union Bank shares?
Brokerage firm Anand Rathi has set a target price of ₹208 for Union Bank of India shares.
Q3: Is Union Bank a good buy now?
Most analysts have a “Buy” or “Hold” rating due to its improving asset quality and strong profit growth. However, stock market investments are subject to risk, so consult a financial advisor.
Q4: When will the next dividend be declared?
Dividends are usually declared after the annual results in May 2026. Given the strong profit, a higher dividend than last year is expected.
Q5: What is the current NPA status of Union Bank?
The bank has significantly improved its asset quality, with Gross NPA at 3.06% and Net NPA at a low 0.51%.