Stock Report

Union Bank of India Reports Strong Q1 FY27 Performance: Consolidated Net Profit Surges 27.4% YoY to ₹5,641.52 Crore

Posted On : 2026-07-15 13:06:36( TIMEZONE : IST )

Union Bank of India has announced its consolidated unaudited financial results for the first quarter of the fiscal year 2027 (Q1 FY27), ended June 30, 2026. The Mumbai-headquartered public sector lender delivered robust bottom-line expansion driven by steady core interest income, improved operating efficiency, and well-contained provisions.

Key Financial Highlights

Consolidated Net Profit: Surged by 27.4% year-on-year (YoY) to reach ₹5,641.52 crore, up from ₹4,427.94 crore in Q1 FY26. On a sequential basis, net profit grew by 2.5% from ₹5,503.61 crore recorded in Q4 FY26.

Total Income: Reached ₹32,660.24 crore, registering a steady YoY growth of 2.2% compared to ₹31,967.61 crore in Q1 FY26. Sequentially, total income remained stable, shifting marginally by -0.04% from ₹32,674.53 crore in Q4 FY26.

Operating Profit: Clocked at ₹8,040.25 crore, marking an increase of 15.9% YoY from ₹6,935.95 crore, and a 0.8% expansion from the previous quarter's ₹7,975.85 crore.

Revenue and Expense Breakdowns

The bank witnessed strong traction in its lending books, optimizing both expenditure and funding costs during the June quarter.

Interest Earned: Rose to ₹27,427.10 crore, supported significantly by the core interest/discount on advances and bills segment, which contributed ₹21,069.59 crore. Income on investments stood at ₹5,765.26 crore.

Other Income: Climbed by 7.5% YoY to arrive at ₹5,233.14 crore, helping cushion sequential fee and non-interest income streams.

Total Expenditure: Dropped to ₹24,619.99 crore (excluding provisions and contingencies), down from ₹25,031.66 crore YoY and ₹24,698.68 crore sequentially. Both interest expenses (₹17,205.68 crore) and total operating costs (₹7,414.31 crore) remained well-managed.

Provisions and Tax Allocations

Reflecting healthier asset quality across portfolios, the bank managed to scale down its total non-tax provisioning requirements.

Provisions & Contingencies (Excluding Tax): Dropped significantly by 41.5% YoY to ₹97,469 lakh (₹974.69 crore) from ₹1,667.27 crore in Q1 FY26. Provisions specifically set aside for non-performing assets (NPAs) stood at ₹1,019.43 crore.

Tax Expenses: Stood at ₹1,698.69 crore for the quarter, compared to ₹1,132.11 crore in Q1 FY26.

Key Analytical Ratios and Capital Position

Capital Adequacy Ratio (CAR): Strengthened under Basel III standards to 19.15%, up from 18.84% YoY and 18.78% sequentially. The Core Equity Tier 1 (CET 1) ratio expanded significantly to 17.08%.

Earnings Per Share (EPS): Basic and diluted EPS (not annualized) climbed to ₹7.39 per share, up from ₹5.80 in Q1 FY26 and ₹7.21 in Q4 FY26.

Net Worth: Climbed to ₹1,28,928.58 crore as of June 30, 2026. The bank's debt-equity ratio was optimized to 0.57.

Government Shareholding: The total equity holding by the Government of India remained unchanged at 74.76%.

Segment Wise Performance

An evaluation of Union Bank's diverse business operations showcases steady expansions across key divisions:

Retail Banking Operations: Remained the primary revenue driver, bringing in a total segment revenue of ₹12,326.36 crore (with non-digital banking contributing ₹12,059.03 crore and digital banking accounting for ₹267.33 crore). The segment profit before tax surged to ₹3,038.48 crore.

Corporate / Wholesale Banking Operations: Generated a solid segment revenue of ₹11,599.70 crore, yielding profits before tax of ₹2,063.73 crore.

Treasury Operations: Contributed ₹6,816.38 crore in segment revenue, netting a profit of ₹1,098.25 crore. Other banking verticals and unallocated segments made up the rest of the total operational matrix.

Shares of Union Bank of India was last trading in BSE at Rs. 170.55 as compared to the previous close of Rs. 170.40. The total number of shares traded during the day was 1640996 in over 7031 trades.

The stock hit an intraday high of Rs. 171.45 and intraday low of 167.25. The net turnover during the day was Rs. 277372224.00.