Financial Performance Summary

Union Bank of India reported unaudited financial results for the quarter ended June 30, 2026 (Q1 FY27). The bank achieved a net profit of ₹5,332 crore, representing a 29.57% year-on-year (YoY) increase from ₹4,116 crore in Q1 FY26 and a 0.31% quarter-on-quarter (QoQ) increase from ₹5,316 crore in Q4 FY26.

Revenue and Income Metrics

Interest Income:

  • Interest income stood at ₹27,203 crore in Q1 FY27, showing a 1.05% YoY increase from ₹26,919 crore and a 2.89% QoQ increase from ₹26,439 crore.

Non-Interest Income:

  • Non-interest income was ₹4,603 crore, representing a 2.61% YoY increase from ₹4,486 crore but a 14.95% QoQ decrease from ₹5,412 crore.

Net Interest Income:

  • Net interest income reached ₹10,037 crore, showing strong growth of 10.15% YoY from ₹9,113 crore and 6.71% QoQ from ₹9,406 crore.

Operating Performance:

  • Operating profit was ₹8,003 crore, a 15.83% YoY increase from ₹6,909 crore and a 0.59% QoQ increase from ₹7,955 crore.
  • Operating expenses decreased to ₹6,638 crore, showing a 0.78% YoY reduction and a 3.28% QoQ reduction.

Business Growth

Total Business:

  • Total business reached ₹23,79,697 crore as of June 30, 2026, representing 7.46% YoY growth but a slight 0.24% QoQ decrease.

Deposit Growth:

  • Global deposits stood at ₹12,83,366 crore, showing 3.50% YoY growth but a 1.80% QoQ decrease.
  • CASA (Current Account Savings Account) deposits were ₹4,50,305 crore, representing 11.73% YoY growth but a 2.12% QoQ decrease.
  • CASA ratio stood at 35.09%, showing improvement from 32.51% a year ago but a slight decrease from 35.20% in the previous quarter.
  • Savings deposits grew 12.51% YoY to ₹3,76,316 crore.
  • Current deposits increased 7.90% YoY to ₹73,989 crore.

Advances Growth:

  • Gross advances reached ₹10,96,331 crore, showing strong 12.50% YoY growth and 1.64% QoQ growth.
  • Credit-deposit ratio improved to 86.10% from 79.17% a year ago and 83.27% in the previous quarter.

Segment-wise Performance

RAM (Retail, Agri, MSME) Advances:

  • RAM advances reached ₹6,08,095 crore, showing 11.56% YoY growth and 1.61% QoQ growth.
  • RAM advances constitute 57.31% of domestic advances.
  • Retail advances grew 12.06% YoY to ₹2,56,653 crore.
  • Agriculture advances increased 6.75% YoY to ₹1,83,184 crore.
  • MSME advances showed strong growth of 16.49% YoY to ₹1,68,258 crore.

Asset Quality

Non-Performing Assets:

  • Gross NPA reduced to 2.65%, showing an 87 basis points improvement YoY from 3.52% and a 17 basis points improvement QoQ from 2.82%.
  • Net NPA reduced to 0.47%, showing a 15 basis points improvement YoY from 0.62% and a 1 basis point improvement QoQ from 0.48%.
  • Provision coverage ratio (PCR) improved to 95.05% from 94.65% a year ago.
  • Credit cost was 0.38%, compared to 0.47% a year ago and 0.16% in the previous quarter.

Capital Adequacy

  • CRAR (Capital to Risk-weighted Assets Ratio) stood at 18.46% as of June 30, 2026, compared to 18.30% a year ago and 18.10% in the previous quarter.
  • CET-1 ratio improved significantly to 16.38% from 15.30% a year ago and 15.69% in the previous quarter.

Key Ratios

  • Net Interest Margin (NIM): 2.80% (4 bps YoY increase, 16 bps QoQ increase)
  • Cost of Deposits: 5.05% (48 bps YoY decrease, 18 bps QoQ decrease)
  • Yield on Advances: 7.90% (60 bps YoY decrease, 8 bps QoQ decrease)
  • Cost to Income Ratio: 45.34% (385 bps YoY improvement, 97 bps QoQ improvement)
  • Return on Assets (RoA): 1.36% (25 bps YoY improvement, stable QoQ)
  • Return on Equity (RoE): 17.23% (208 bps YoY improvement, 81 bps QoQ decrease)

Network Expansion

The bank maintains an extensive network with:

  • 8,700 branches including foreign branches
  • 8,758 ATMs
  • 28,629 BC Points (Business Correspondent Points)
  • 138 MLPs (MSME Loan Points)
  • 143 RLPs (Retail Loan Points)
  • 117 Union MSME First Branches
  • 1,671 Gold Loan Points
  • 11 LCBs & 38 MCBs (Large Corporate Branches & Mid Corporate Branches)
  • 3 SAMBs & 28 ARBs (Specialized Asset Management Branches & Asset Recovery Branches)

Financial Inclusion Initiatives

The bank reported significant progress in government-backed financial inclusion schemes:

PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana):

  • 2.23 lakh new enrollments during Q1 FY27

PMSBY (Pradhan Mantri Suraksha Bima Yojana):

  • 6.70 lakh new enrollments during Q1 FY27

PMJDY (Pradhan Mantri Jan Dhan Yojana):

  • 3.45 crore accounts with balance of ₹15,943 crore as of June 30, 2026
  • Compared to 3.26 crore accounts with ₹13,089 crore balance a year ago

APY (Atal Pension Yojana):

  • 2.39 lakh new enrollments during Q1 FY27

Union Nari Shakti Scheme for Women Entrepreneurs:

  • Sanctioned 1,817 applications for ₹321 crore during Q1 FY27

Green Initiatives

The bank reported progress in environmentally focused lending:

  • Renewable Energy Sector: ₹34,363 crore sanctioned as of June 30, 2026
  • Union Green Vehicle: ₹2,819 crore sanctioned as of June 30, 2026