Union Bank of India reported a 29.5% year-on-year rise in standalone net profit to ₹5,332 crore for the quarter ended June 30, 2026, compared to ₹4,116 crore in the corresponding quarter of the previous year. On a consolidated basis, net profit for the quarter stood at ₹5,642 crore, up from ₹4,428 crore in Q1FY26. The bank's Net Interest Margin (NIM) improved to 2.76% in Q1FY27, up from 2.64% in the previous quarter, reflecting better yield management. While profitability and asset quality strengthened, business growth metrics trailed the bank's FY27 guidance, with credit growth at 12.50% against a target of 13% to 14%, and deposit growth at 3.50% versus an 8% to 9% aim. The board approved the financial results at its meeting held on July 15, 2026.

Financial Performance Highlights

The bank's interest income rose to ₹27,203 crore in Q1FY27, compared to ₹26,919 crore in the same period a year ago. Net Interest Income grew by 10.14% year-on-year to ₹10,037 crore, underpinning the profit growth. Operating profit increased by 15.83% to ₹8,003 crore, while provisions and contingencies stood at ₹2,670 crore.

The following table summarises the key financial metrics for Q1FY27:

Business Growth vs FY27 Guidance

Union Bank of India's business growth figures for Q1FY27 highlight a gap relative to its full-year targets. Deposit growth of 3.50% year-on-year is significantly below the bank's FY27 guidance range of 8% to 9%. Similarly, gross advances grew at 12.50% year-on-year, falling short of the guided range of 13% to 14%. The bank's total business stood at ₹23,79,697 crore, growing by 7.46% year-on-year.

Management Outlook and Targets

Management has outlined a set of near-term targets aimed at strengthening the bank's balance sheet and improving profitability. The bank is targeting 1% growth in advances and plans to boost its Net Interest Margin. On the liability side, management is seeking to raise between $1.5 billion and $2 billion in FCNR (Foreign Currency Non-Resident) deposits, along with $200 million to $300 million through OSCE CV, by September.

Looking ahead, management expects credit growth to remain in the range of 12% to 13% or more, while deposit growth is anticipated to be slightly lower at around 2%. The bank intends to maintain its CD (Credit-Deposit) ratio and LCR/NSFR (Liquidity Coverage Ratio/Net Stable Funding Ratio) at comfortable levels.

The following table outlines the key management targets:

Asset Quality and Slippages

Asset quality metrics showed improvement on both a sequential and annual basis. The Gross Non-Performing Assets (GNPA) ratio declined to 2.65% from 2.82% in the previous quarter and 3.52% in the year-ago quarter. The Net Non-Performing Assets (NNPA) ratio improved to 0.47% from 0.48% sequentially and 0.62% year-on-year. Fresh slippages for Q1FY27 stood at ₹2,062 crore, compared to ₹2,023 crore in the previous quarter. The Provision Coverage Ratio (PCR) remained robust at 95.05%.

The following table presents the asset quality details:

Union Bank of India witnessed a notable block trade on the National Stock Exchange (NSE), with approximately 1,006,828 shares transacted at a price of Rs. 177.00 per share, aggregating to a total deal value of Rs. 17.82 crores. Block trades are large-volume transactions typically executed between institutional participants outside the regular market order book.

Block Trade Details

The following table summarises the key parameters of the block trade recorded on the NSE:

Transaction Overview

Block trades are characterised by their large size and are generally executed by institutional investors such as mutual funds, foreign portfolio investors, or other large financial entities. The transaction in Union Bank of India shares, valued at Rs. 17.82 crores for approximately 1,006,828 shares at Rs. 177.00 apiece, reflects significant institutional interest in the stock on the NSE.