Synopsis : Union Bank of India reported a strong performance for the first quarter of FY27, with standalone net profit rising 29.5 per cent year-on-year to Rs 5,332 crore. The public sector lender witnessed healthy growth in net interest income, improved margins, better asset quality and strong loan growth across retail, agriculture and MSME segments. The results reflect continued improvement in the bank's core business and operational efficiency.
Union Bank of India delivered a robust set of financial results for the April-June quarter of FY27, reporting a 29.5 per cent year-on-year increase in standalone net profit. The state-owned lender posted a profit of Rs 5,332 crore during the quarter, compared to Rs 4,116 crore in the corresponding period last year, supported by higher core income, improved operating efficiency and lower expenses.
The bank's Net Interest Income (NII), a key measure of core banking performance, rose 10.1 per cent year-on-year to Rs 10,037 crore from Rs 9,113 crore reported in the same quarter of FY26. Net Interest Margin (NIM), which indicates the profitability of lending operations, also improved to 2.80 per cent from 2.76 per cent a year earlier, reflecting better earnings from interest-bearing assets.
Non-interest income increased 2.6 per cent year-on-year to Rs 4,603 crore during the quarter. However, on a sequential basis, it declined 15 per cent compared to the March quarter. Within this segment, fee-based income emerged as a major growth driver, surging 45 per cent year-on-year to Rs 3,215 crore, highlighting increased business activity and stronger fee generation from banking services.
Treasury income, however, witnessed a sharp decline of 54.5 per cent compared to the same period last year, falling to Rs 645 crore from Rs 1,418 crore. Despite the yearly decline, treasury income recorded a marginal sequential increase over the previous quarter, indicating some recovery in investment-related earnings.
The bank continued to strengthen its asset quality during the quarter. Gross Non-Performing Assets (GNPA) improved significantly to 2.65 per cent at the end of June 2026, compared with 3.52 per cent a year earlier. Net Non-Performing Assets (NNPA) also declined to 0.47 per cent from 0.62 per cent, reflecting better recovery efforts and prudent credit risk management.
Another positive indicator was the improvement in the slippage ratio, which measures fresh additions to bad loans. The ratio declined to 0.82 per cent from 0.99 per cent in the corresponding quarter last year, suggesting better loan quality and lower stress in the bank's credit portfolio.
Union Bank also reported healthy credit growth across key business segments. Global advances increased 12.5 per cent year-on-year to Rs 10.96 trillion, while domestic advances grew 13.1 per cent to Rs 10.61 trillion. The growth was supported by strong lending across retail, agriculture and MSME businesses, which remain key focus areas for the bank.
Retail advances rose 12.1 per cent to Rs 2.57 trillion, reflecting continued consumer demand for housing, vehicle and personal loans. Overall RAM (Retail, Agriculture and MSME) advances expanded 11.6 per cent year-on-year to Rs 6.08 trillion, highlighting broad-based growth across priority lending segments.
On the deposit side, global deposits increased 3.5 per cent year-on-year to Rs 12.83 trillion. Domestic deposits also grew by the same percentage, reflecting stable customer confidence and healthy deposit mobilisation despite an increasingly competitive banking environment.
The bank's CASA (Current Account and Savings Account) performance also improved during the quarter. The domestic CASA ratio rose to 35.10 per cent from 32.52 per cent a year earlier, while CASA deposits increased 12.5 per cent year-on-year to Rs 3.76 trillion. A higher CASA ratio helps banks reduce their overall cost of funds and supports profitability.
Overall, Union Bank of India delivered a strong quarterly performance marked by healthy profit growth, rising core income, improving margins, stronger asset quality and sustained loan growth. Investors will now watch the bank's performance over the coming quarters, particularly its ability to maintain asset quality, improve profitability and continue expanding its lending portfolio in a competitive banking landscape.
Disclaimer : This content is for informational and educational purposes only. Investors and readers should conduct their own research and consult professional financial advisors before making any investment decisions.
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