Union Bank of India announced robust financial results for the third quarter of fiscal year 2025-26, ending December 31, 2025. The public sector lender reported a 9% year-on-year (YoY) increase in its net profit, reaching ₹5,017 crore, compared to ₹4,604 crore in the corresponding quarter of the previous fiscal year. This positive earnings report was largely driven by improved asset quality and a significant decline in provisions. Gross Non-Performing Assets (NPA) saw an improvement, decreasing to 3.06%, while Net NPAs also reduced to 0.51%. This indicates effective risk management and a healthier loan portfolio. However, the Net Interest Income (NII), a key measure of a bank's core profitability, recorded a modest 1% YoY growth, reaching ₹9,328 crore. The announcement of these strong quarterly results on January 14, 2026, triggered a significant positive reaction in the stock market. Union Bank of India's shares surged by over 7%, with some reports indicating gains of over 8%, hitting an intraday high of ₹180 on the National Stock Exchange (NSE). This marks the stock's highest level since November 2017 and a 52-week high, reflecting renewed investor confidence in the bank's performance and outlook. Several credible financial news outlets, including Mint, Business Standard, and The Economic Times, corroborated these findings. The improved capital adequacy ratios further strengthened the bank's financial standing. Analysts from firms like Motilal Oswal had previously set a target of Rs 180, aligning with the stock's post-earnings performance.