The Reserve Bank of India has imposed a penalty of Rs 8,43,000 on Union Bank of India. In an exchange filing, the bank disclosed that the penalty is levied for the deficiencies observed in soiled notes remittances made to the RBI and for ATM Cash Out.
In the exchange filing, the bank stated that there will be no significant impact on its financial, operational, or other activities due to the imposed penalty.
Union Bank gets new Executive Director
On Tuesday, Amresh Prasad was appointed as the new Executive Director of Union Bank by the central government for a three-year term.
Before joining Union Bank, Amresh Prashad was the Chief General Manager of Punjab National Bank. He comes with a rich banking experience of over 32 years from branch banking, Zonal Offices to Head Office level, which includes Corporate Credit, Credit Review and Monitoring, Transaction Monitoring, the public sector bank said in a filing.
Union Bank Q2 results
In the second quarter of FY26, Union Bank reported a 10 per cent YoY decline in net profit to Rs 4,249. Last fiscal year, the public sector bank reported a net profit of Rs 4,719.7 crore.
“The 10% year-on-year dip in net profit was primarily due to an approximately Rs 500 crore reduction in recoveries from written-off assets,” said Avinash Prabhu, CFO of the bank.
Further, Union Bank’s net interest income (NII) declined 2.6 per cent YoY to Rs 8,812 crore in Q2 FY26, compared to Rs 9,047 in the corresponding quarter of the previous fiscal year. The bank’s net interest margin slipped 23 basis points to 2.67 per cent in Q2 FY26.
