Union Bank reported Q1FY27 net profit at Rs 5,332.3 crore, up 29.57% year-on-year (YoY) from Rs 4,115.53 crore reported in Q1FY26.

The Union bank earned Rs 27,203.19 crore in interest income during Q1FY27, up from Rs 26,919.25 crore reported in Q1FY26.

Union Bank’s asset quality improves, bad loans decline

Asset quality of the Union bank improved on both sequential as well as yearly basis. Gross non-performing assets (GNPA) ratio declined to 2.65% in Q1FY27 from 3.52% a year ago and from 2.82% in Q4FY26. Net NPA fell to 0.47% from 0.62%.

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Amount of Gross NPAs reduced to Rs 29,093 crore, while the provision coverage ratio (PCR) improved to 95.05%. The bank also brought down its credit cost to 0.38%, compared with 0.47% in the year-ago period.

During the quarter, provisions and contingencies stood at Rs 979 crore, while provisions towards NPAs came in at Rs 1,020 crore.

Union Bank’s global deposits increased 3.5% YoY to Rs 12.83 lakh crore. The bank also improved its CASA ratio to 35.1%, reflecting a higher share of low-cost deposits.

Union Bank loan growth remains healthy

Global advances of Union Bank also grew 12.5% YoY to Rs 10.96 lakh crore, while domestic advances rose 13.1% to Rs 10.61 lakh crore. Growth remained broad-based across the retail, agriculture and MSME (RAM) portfolio, which expanded 11.6% to Rs 6.08 lakh crore.

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Within the retail segment, home loans reached Rs 1.10 lakh crore, making up nearly 43% of the retail loan book. MSME loans posted the fastest growth among RAM segments, rising 16.5% YoY to Rs 1.68 lakh crore, while agriculture advances increased 6.8% to Rs 1.83 lakh crore.

Union Bank’s digital business gains traction

Union bank said its digital banking business continued to expand during the quarter. It added around 11 lakh new users to the Union Ease App and mobilised over Rs 6,500 crore through digital deposits.

Digital channels also generated more than Rs 600 crore in retail loans, Rs 320 crore in MSME loans and Rs 85 crore in agriculture loans. The bank processed over 400 crore UPI transactions during the quarter, while its WhatsApp banking platform crossed 8.2 million registered users.

Union Bank share price

The share price of Union Bank is gained 2.02% in the intraday session today. The stock of Union Bank has declined 7.72% in last three months. On year-to-date (YTD) basis, Union Bank shares gained 13.32%.