Union Bank of India , one of India's leading public sector banks, has announced a significant change in its leadership. The bank's Non-Executive Chairman and Part Time Non-Official Director, Shri Srinivasan Varadarajan, has completed his tenure, marking the end of an era for the financial institution.

Key Details of the Leadership Change

Regulatory Compliance and Disclosure

In adherence to the Securities and Exchange Board of India (SEBI) regulations, specifically Regulation 30 read with Clause 7 of Para A of Part A of Schedule III of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, Union Bank of India has duly informed the stock exchanges about this leadership transition.

The bank has notified both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) about Varadarajan's departure from the board. This move ensures transparency and keeps investors and stakeholders informed about significant changes in the bank's governance structure.

Impact and Next Steps

The bank has not provided information about Varadarajan's successor. This change in leadership could potentially influence the bank's strategic direction and governance in the coming months. Stakeholders and market observers will likely be keen to see who steps into this crucial role and what new perspectives they might bring to Union Bank of India's operations and growth strategies.

As Union Bank of India navigates this transition, the financial sector will be watching closely to see how this change might affect the bank's performance and position in India's competitive banking landscape.

The bank's prompt disclosure of this information demonstrates its commitment to corporate governance and regulatory compliance, which are crucial factors in maintaining investor confidence in the public sector banking space.

Union Bank of India has reported a net profit of Rs 4,249 crores for Q2 FY26, marking a 3.25% quarter-on-quarter increase. The bank's performance reflects its strategic focus on sustainable growth and bottom-line strength.

Key Financial Highlights

• Net Profit: Rs 4,249.00 crores for Q2 FY26 (3.25% Q-o-Q increase)
• H1 FY26 Net Profit: Rs 8,365.00 crores
• Operating Profit: Rs 6,814.00 crores for Q2 FY26
• H1 FY26 Operating Profit: Rs 13,723.00 crores

Profitability and Capital Adequacy

• Return on Assets (ROA): 1.16%
• Return on Equity (ROE): 15.08%
• Capital Adequacy Ratio: 17.07%
• CET-1 Ratio: 14.37%

Asset Quality Improvement

• Gross NPA: Reduced by 107 bps Y-o-Y to 3.29%
• Net NPA: Declined by 43 bps Y-o-Y to 0.55%
• Provision Coverage Ratio (PCR): 95.13%

Credit Cost and Slippages

• Credit Cost: 22 bps for Q2 FY26 (down from 109 bps in Q2 FY25)
• Slippage Ratio: 0.91% in Q2 FY26 (down from 2.40% in Q2 FY25)
• H1 FY26 Gross Slippages: Rs 4,496.00 crores
• H1 FY26 Recoveries: Rs 6,284.00 crores

Business Growth and Strategy

The bank has strategically reduced high-cost bulk deposits by 21.85% Y-o-Y to protect margins. This move has helped maintain the Net Interest Margin (NIM) at 2.67%. Union Bank aims to shift its portfolio mix toward retail, agriculture, and MSME segments, targeting 58% from the current 55%.

Future Outlook

Managing Director and CEO Asheesh Pandey indicated that the bank expects to achieve system-level growth going forward, aspiring for 9-10% growth on both asset and liability sides. The bank plans to focus on sustainable growth while maintaining a balance between top-line expansion and bottom-line strength.

Union Bank of India is set to celebrate its 107th Foundation Day on November 11th, with plans to launch new digital initiatives, including mobile banking solutions for business customers. The management is working on a comprehensive strategy document outlining plans for 1-year, 3-year, and 5-year horizons, which will be subject to quarterly or half-yearly reviews for mid-course corrections.

As the banking sector navigates through evolving market conditions, Union Bank of India's focus on margin protection and strategic growth in retail and MSME segments positions it well for the coming quarters. The bank's improved asset quality and strong capital position provide a solid foundation for future growth initiatives.