UBI reduced Gross Non Profitable Assets (GNPA) by 87 bps to 2.65% of the outstanding loans, from 3.52% in the year ago period. Net NPA also improved to 0.47%, down 15 bps from 0.62%. File
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Union Bank of India (UBI) net profit increased 29.57% to ₹5,332 crore as defaulting assets as a share of total loans reduced and net interest income increased in first quarter of fiscal 2027 as compared with ₹4,116 crore in the year ago period.
Net interest income increased 10.15% to ₹10,037 crore in the reproting quarter as against ₹9,113 crore in the corresponding period last year. Net interest margin increased a mild 4 basis points (bps) to 2.8% in the June quarter from 2.76%, on a year-on-year basis. The bank’s strategy will be to continue defending NIM said Asheesh Pande, MD and CEO of UBI, speaking at the media briefing.
The credit to deposit ratio also increased to 86.1% in the June quarter as against 79.2% in the same quarter last fiscal. This is because total deposits increased just 3.52% to ₹12.8 lakh crore in the reporting quarter. However total loans increased at a much faster pace of 12.5% to ₹10.9 lakh crore.
The PSU bank’s ratio of Current Account to Savings Account (CASA) increased 258 bps to 35.09% in the reporting quarter on a year-on-year basis , but dipped 11 bps from the March quarter of fiscal 2026. Mr. Pande said that building CASA and and retail term deposit will be the first preference for the bank.
UBI reduced Gross Non Profitable Assets (GNPA) by 87 bps to 2.65% of the outstanding loans, from 3.52% in the year ago period. Net NPA also improved to 0.47%, down 15 bps from 0.62%.
The bank currently has an FCNR (B) account worth $106 million sourced from Australia and UAE among their other five NRI branches and 20 other general branches with the base for NRI customers.
Published – July 15, 2026 03:17 pm IST
