Union Bank of IndiaRecord Operating Profit ₹8,003 Cr, NIM 2.80%

Union Bank of India reported what management called its highest-ever operating profit of ₹8,003 Cr in Q1 FY27, with return on assets of 1.36%, NIM up to 2.80% from 2.64% and cost-to-income down about 500 bps.

The bank shed ₹18,000 to ₹20,000 Cr of bulk deposits, cutting the bulk share from about 27% to 19% and the cost of deposits by 18 bps, while the credit-deposit ratio rose to 86% and capital adequacy was 18.46%. Provisions for NPAs rose on higher write-offs, which management says will not continue, but SMA above ₹5 Cr fell to about ₹2,382 Cr, and the bank has set aside ₹800 Cr towards ECL, whose total requirement it puts at about ₹11,300 Cr with about ₹6,000 Cr still to provide.

It raised US$106 million of FCNR deposits and targets US$1.5 billion to US$2 billion by September. Management aims to grow advances at the industry rate plus 1%, with a pipeline of more than ₹1 lakh Cr sanctioned but not disbursed, and said it does not buy IBPC.