Union Bank of India reported total debt securities issued and outstanding of ₹16,083 crore as of September 30, 2026. The disclosure covers instruments maturing between November 2026 and March 2036, alongside perpetual bonds.

The filing was submitted to BSE and NSE pursuant to SEBI Circular No. SEBI/HO/DDHS/DDHS-PoD/P/CIR/2025/137 dated October 15, 2025. The statement details 12 distinct debt instruments, including five perpetual bonds and seven term loans or notes.

Debt composition and maturity profile

The bank’s debt portfolio is dominated by perpetual instruments, which account for ₹6,983 crore of the total outstanding amount. These bonds carry coupon rates ranging from 8.40% to 8.70%. The remaining ₹9,100 crore comprises term debt with fixed maturity dates.

The nearest maturity is scheduled for November 24, 2026, involving a ₹750 crore instrument with a 7.74% coupon. The longest-dated debt matures in March 2036, carrying a 7.16% coupon rate for a ₹3,000 crore issuance made in March 2026.

Key debt instruments

Among the term debt securities, the highest coupon rate is observed on the instrument maturing in November 2029. This ₹1,000 crore bond carries an 8.93% annual coupon. In contrast, the most recent issuance in March 2026 has the lowest coupon rate in the term debt category at 7.16%.

Most term debt instruments include embedded call options. For instance, the bonds maturing in 2035, 2036, and 2037 feature call options exercisable on the tenth anniversary from the deemed date of allotment. Several other instruments have call options on the fifth anniversary.

What the numbers show

A divergence exists between the cost of capital raised in earlier years versus recent issuances. Perpetual bonds issued between 2021 and 2022 carry higher coupons (8.40%-8.70%) compared to the long-term debt issued in 2026 (7.16%). This suggests a potential reduction in the bank's marginal cost of borrowing for new long-term obligations compared to its historical AT1 capital costs, although these instruments serve different regulatory capital purposes.

The concentration of call options on perpetual bonds indicates that Union Bank retains flexibility to redeem these instruments if market conditions allow, potentially lowering future interest outgo if refinancing at lower rates becomes feasible.

Union Bank of India reported a 18.53% year-on-year growth in gross advances for the quarter ended September 30, 2026. The bank's total business expanded 12.02% YoY to ₹24,75,387 crore, driven by robust credit demand and steady deposit mobilization.

Domestic CASA deposits recorded a significant rise of 14.66% YoY, reaching ₹4,60,697 crore. This growth outpaced the overall domestic deposit growth of 6.88%, indicating a successful shift toward lower-cost funding sources. The bank's Credit-Deposit (CD) ratio improved substantially, reflecting aggressive deployment of funds into the loan book.

Key Business Metrics

The following table summarizes the provisional business figures for Q2FY27 compared to the previous quarter and the corresponding period last year:

What the Numbers Show

A divergence between advance growth and deposit growth highlights an expanding balance sheet leverage. While gross advances grew 18.53% YoY, total deposits increased only 6.87% YoY. This disparity pushed the domestic Credit-Deposit ratio (excluding bank deposits) up by 733 basis points to 84.34% from 77.01% a year ago.

Despite the rapid expansion in the loan book, the bank maintained a healthy CASA ratio. Domestic CASA deposits grew at more than double the rate of total domestic deposits (14.66% vs 6.88%). Consequently, the CASA share of total domestic deposits improved by 237 basis points YoY to 34.93%, although it saw a marginal dip of 17 bps on a quarter-on-quarter basis from 35.10% in June 2026.

Regulatory Disclosure

The intimation was filed under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank noted that the figures are provisional and subject to review by Statutory Central Auditors before the final declaration of financial results.