Mumbai: Union Bank of India has reported a strong financial performance for the first quarter of the financial year 2026-27, posting a standalone net profit of ₹5,332 crore for the quarter ended June 30, 2026.
The public sector lender recorded significant improvement in asset quality, higher operating profit, growth in advances, and maintained a strong capital position during Q1 FY27. The bank’s Board of Directors approved the unaudited financial results at its meeting held on July 15, 2026.
Union Bank of India Q1 FY27 Financial Highlights
Key financial highlights for the quarter include:
- Standalone Net Profit: ₹5,332 crore, compared with ₹4,116 crore in Q1 FY26.
- Consolidated Net Profit: ₹5,641 crore.
- Total Income (Standalone): ₹31,806 crore.
- Operating Profit: ₹8,003 crore.
- Net Interest Income (NII): ₹10,037 crore, up 10.15% year-on-year.
- Net Interest Margin (NIM): 2.80% compared with 2.76% in the same period last year.
- Capital Adequacy Ratio: 18.46%.
The bank’s standalone net profit increased by around 29.57% year-on-year, reflecting improved operational performance and stronger financial management.
Asset Quality Improves as NPAs Decline
Union Bank of India continued to strengthen its asset quality during Q1 FY27.
The bank’s:
- Gross Non-Performing Assets (GNPA) declined to 2.65% as of June 30, 2026, from 3.52% a year earlier.
- Net Non-Performing Assets (NNPA) reduced to 0.47%, compared with 0.62% in June 2025.
The improvement in bad loan ratios reflects the bank’s focus on prudent lending practices, effective recovery measures, and better credit risk management.
Strong Growth in Business and Advances
The bank witnessed healthy growth across key business segments.
Union Bank of India’s total business increased by 7.46% year-on-year to ₹23,79,697 crore as of June 30, 2026.
The bank’s gross advances stood at ₹10,96,331 crore, registering a growth of 12.50% year-on-year.
The RAM (Retail, Agriculture and MSME) advances segment recorded strong growth:
- RAM advances increased by 11.56% year-on-year to ₹6,08,095 crore.
- Retail advances grew by 12.06%.
- MSME advances increased by 16.49%.
RAM advances accounted for 57.31% of domestic advances, highlighting the bank’s focus on diversified lending.
Operating Performance Remains Strong
Union Bank of India reported an operating profit of ₹8,003 crore in Q1 FY27, registering a growth of 15.83% year-on-year.
The bank’s operating expenses declined slightly to ₹6,638 crore during the quarter compared with ₹6,690 crore in Q1 FY26.
The improvement in profitability was supported by higher interest income, efficient cost management, and better asset quality.
Focus on Digital Banking and Sustainable Growth
The bank continues to focus on strengthening digital banking services, improving customer experience, and expanding responsible lending practices.
Union Bank of India maintained a strong liquidity position and capital base, with the Government of India holding a 74.76% stake in the bank.
The bank’s annualised Return on Assets (RoA) stood at 1.36%, reflecting improved operational efficiency.
Stock Market Reaction After Q1 Results
Following the announcement of Q1 FY27 results, shares of Union Bank of India gained attention in the market.
The stock rose 1.58% to ₹173.25, reflecting investor interest after the bank reported strong profit growth, improved asset quality, and steady business expansion.
About Union Bank of India
Union Bank of India is one of India’s leading public sector banks, engaged in treasury operations, corporate and wholesale banking, retail banking, and other banking services. Established in 1919, the bank operates a wide network across India and focuses on financial inclusion, digital banking transformation, and sustainable growth while supporting individuals, businesses, and industries.
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