Union Bank of India (UNIONBANK) investor relations material

Executive summary

• Net profit for Q1 FY 2026-2027 reached INR 5,332 crore, up 29.57% year-over-year, with operating profit surpassing INR 8,000 crore for the first time, growing 15.83% year-over-year.

• Net interest income rose to INR 10,037 crore, a 10.15% year-over-year increase, and crossed INR 10,000 crore in a quarter for the first time.

• Asset quality improved significantly, with GNPA at 2.65% (down 87 bps YoY) and NNPA at 0.47% (down 40 bps YoY); PCR stood at 95.05%.

• Capital adequacy remained robust with CRAR at 18.46% and CET1 at 16.38% as of June 2026.

• Strategic focus on efficiency, digital transformation, ESG leadership, and customer centricity, with multiple awards for governance, compliance, and technology.

Financial highlights

• Global advances grew 12.50% year-over-year to ₹10,96,331 crore; deposits rose 3.50% to ₹12,83,366 crore.

• Fee-based income increased by 2.61% year-over-year, driven by core fee income growth.

• CASA ratio at 35.10%, with CASA deposits growing 11.72% YoY.

• ROA at 1.36% and ROE at 17.23%, both showing consistent improvement.

• Cost to income ratio improved to 45.34% from 49.95% a year ago.

Outlook and guidance

• Board-approved capital plan for FY27 includes raising up to ₹8,000 crore (₹3,000 crore equity, ₹5,000 crore AT-1/Tier-2).

• Targeting further reduction in bulk deposit ratio below 15% and continued focus on CASA and retail term deposits for liability growth.

• Aiming for credit growth above industry average, especially in RAM sectors, with a focus on sustainable asset-liability management.

• NIM expected to be defended and improved from current 2.80% levels.

• Recovery targets for FY 2027 set at INR 5,000 crore, leveraging strengthened recovery verticals and digital initiatives.