Financial Services · NSE: UNIONBANK
Union Bank of India
Q1 FY27 earnings call · Guided by management
Call held 15 Jul 2026 · Read the filing on NSEFiling
- M.Cap
- ₹1,56,031Cr₹1.56L Cr
- P/E
- 7.1×
- 1Y return
- +30.78%
- From 52W high
- −0.5%
Highlights are read by AI from the company's filing and can contain mistakes. Check the source page linked to each line.
Share price
Results Q1 FY27, as filed · consolidated · ₹ Cr
| Q1 FY27 | Q1 FY26 | YoY | Q4 FY26 | QoQ | |
|---|---|---|---|---|---|
| Interest earned | 27,427 | 27,475 | -0.2% | 26,676 | +2.8% |
| Net interest income | 10,221 | 9,244 | +10.6% | 9,671 | +5.7% |
| Operating profit | 8,040 | 6,936 | +15.9% | 7,976 | +0.8% |
| Net profit | 5,642 | 4,428 | +27.4% | 5,504 | +2.5% |
| EPS (₹) | 7.39 | 5.80 | +27.4% | 7.21 | +2.5% |
From the company's own results filing on NSE. Net profit is the owners' share. Growth and the dotted lines are worked out from the filed figures.
Guidance
Defending NIM is certain; improving NIM is the aspiration
Asheesh Pandey · Managing Director and CEO · p. 5
Defending NIM is certain; improving NIM is the aspiration
“So defending is for sure and improving is the aspiration from here further more.”
Deposit growth to run about 2% below the advances growth range
Asheesh Pandey · Managing Director and CEO · Q&A · p. 6
Deposit growth to run about 2% below the advances growth range
“So certainly in the similar range minus 2% somewhere deposit growth will continue.”
NIM rose from 2.64 to 2.80; expected to be better going forward
Asheesh Pandey · Managing Director and CEO · Q&A · p. 17
NIM rose from 2.64 to 2.80; expected to be better going forward
“So that is where we were saying we will defend and then the last quarter when we saw 2.64, we said it is bottomed out and we have come with 2.80. So, I think going forward you will see better than this position.”
More figures from the call
“And when we do recoveries, so recovery if I take which is very bare minimum which we have done this time is INR750 crore. So 750 into 4 it comes 3,000. So certainly it will be more around INR4,500 crores to INR5,000 crores in the entire year”
“The FCNR we have already done 106 million up till now and we have not done any leveraging up till now, but we are in talk and we'll be going forward with that.”
“So, going forward our aspiration maybe it may take one year, two year, three year down the line, but to bring below bulk deposit to 1.15 percentage points.”
“If we plan to grow another INR5,00,000-INR6,00,000 crores from here, so we should have been on the various robust base rather than only on the superficial foundation.”
“But going forward, even we have almost more than INR1,00,000 crores of a sanctioned, but not disbursed pipeline in the corporate itself.”
“And regarding ECLGS, if I can say that we are expected to disburse around INR14,000 crores to INR15,000 crores on the overall and already we have completed around INR10,000 crores disbursement in that.”
In short
- 01Advances expected to keep growing 12% to 13% or more, aiming at industry growth plus 1%.
- 02Management aims to improve NIM from the 2.80% reached this quarter, after defending it earlier.
- 03Total ECL requirement is about Rs 11,300 crore; about Rs 6,000 crore is still needed after existing additional provisions.
- 04Even if ECL is absorbed in year one, CRAR would fall from 18.10% to 17.54%; it can be phased over four years.
- 05FCNR mobilisation of 1.5 to 2 billion (about Rs 20,000 crore) is expected by September.
- 06Full-year recovery expected around Rs 4,500 crore to Rs 5,000 crore.
- 07RAM segments aimed to grow better than 18% to 20%; corporate has over Rs 1,00,000 crore sanctioned but not disbursed.
- 08MSME stress acknowledged, mostly in low-ticket loans; nothing negative seen so far in MSME or Maharashtra agri.
Segments
MSME: ECLGS sanctioned book Rs 12,000 crore, disbursed Rs 10,000 crore
Asheesh Pandey · Managing Director and CEO · Q&A · p. 10
MSME: ECLGS sanctioned book Rs 12,000 crore, disbursed Rs 10,000 crore
“So ECLGS when you asked INR12,000 crores is our sanctioned book and disbursed is INR10,000 crores”
Gold loans: Gold loans not grown, a dent of about Rs 2,500-3,000 crore
Asheesh Pandey · Managing Director and CEO · p. 11
Gold loans: Gold loans not grown, a dent of about Rs 2,500-3,000 crore
“So it is across, but yes, gold we have not grown and cautiously we have not grown and that dent has actually done around INR2,500 crores to INR3,000 crores.”
Domestic mix at 57 to 43 levels to continue; no IBPC buying
Asheesh Pandey · Managing Director and CEO · Q&A · p. 15
Domestic mix at 57 to 43 levels to continue; no IBPC buying
“We told we are at - domestically I am talking - 57 to 43 levels and we'll continue with that. IBPC, we do not want to even hear it.”
Corporate: Over Rs 70,000 crore of corporate book underwritten in last eight-nine months
Asheesh Pandey · Managing Director and CEO · Q&A · p. 15
Corporate: Over Rs 70,000 crore of corporate book underwritten in last eight-nine months
“And we are self-sustained, let me tell you that I think last eight-nine months we would have underwritten more than INR70,000 crores of corporate book.”
Underwritten Rs 60,000-70,000 crore and down-selling it
Asheesh Pandey · Managing Director and CEO · p. 18
Underwritten Rs 60,000-70,000 crore and down-selling it
“And even now when we have said that we have underwritten INR60,000 crores to INR70,000 crores and we are down-selling it.”
Margins and costs
Cost-to-income ratio down about 500 basis points
Asheesh Pandey · Managing Director and CEO · p. 5
Cost-to-income ratio down about 500 basis points
“This time, yes, cost-to-income we told we are working hard on it and almost 500 basis points, 5 percentage points we have come down.”
Deposit cost fell 18 bps due to the CASA and RTD strategy
Asheesh Pandey · Managing Director and CEO · p. 5
Deposit cost fell 18 bps due to the CASA and RTD strategy
“So this is where we are trying to build because -- actually because of this strategy only the deposit cost has reduced by 18 bps.”
Treasury: Treasury income down from Rs 1,439 crore in June 2025 to 630-640 level
Asheesh Pandey · Managing Director and CEO · p. 16
Treasury: Treasury income down from Rs 1,439 crore in June 2025 to 630-640 level
“Yes, but one thing like June 2025 we had treasury income of INR1,439 crores which has actually come down to last two quarters which has come to 630, 640 level.”
Domestic yield on advances 8.01%; global 7.90%
Asheesh Pandey · Managing Director and CEO · Q&A · p. 16
Domestic yield on advances 8.01%; global 7.90%
“Yes, see, it is actually domestic our yield on advances is 8.01%. I think, and the global yield on advances is 7.90%.”
Yield on advances expected to bottom out
Asheesh Pandey · Managing Director and CEO · Q&A · p. 16
Yield on advances expected to bottom out
“So, yield on advances going forward, certainly we think that it will bottom out going forward.”
Debt and working capital
Bulk deposit share of total deposits fell from about 27% to about 19%
Asheesh Pandey · Managing Director and CEO · p. 6
Bulk deposit share of total deposits fell from about 27% to about 19%
“And because the bulk deposit to the total deposit ratio was around 27%-odd which has come down to 19%-odd something.”
Average LCR at 121 vs board limit 107 and RBI threshold 100%
Asheesh Pandey · Managing Director and CEO · p. 6
Average LCR at 121 vs board limit 107 and RBI threshold 100%
“LCR our stands at average 121 basis points and our board approved is 107, RBI threshold is 100%.”
Average CASA about Rs 24,000 crore and RTD Rs 17,000 crore; Rs 41,000 crore together
Asheesh Pandey · Managing Director and CEO · p. 4
Average CASA about Rs 24,000 crore and RTD Rs 17,000 crore; Rs 41,000 crore together
“So CASA even in the June quarter, I can give you the average figures is around INR24,000 plus crores average CASA we have maintained during the quarter and RTD we have maintained average as a INR17,000 crores, total put together INR41,000 crores.”
Shed about Rs 18,000 to Rs 20,000 crore of bulk deposits
Asheesh Pandey · Managing Director and CEO · p. 4
Shed about Rs 18,000 to Rs 20,000 crore of bulk deposits
“Around we have shed off around INR18,000 to INR20,000 crores of bulk deposit, but shed off doesn't mean that we are not taking the deposit.”
Capital at 18.46%; CD ratio up from 74% to 86%
Asheesh Pandey · Managing Director and CEO · p. 6
Capital at 18.46%; CD ratio up from 74% to 86%
“The right set of colors is that first our own capital we are sitting at 18.46% levels today. And if you see the June '25 or March '25, the CD ratio was 74% and today 86%.”
Fund raising
FCNR 1.5 to 2 billion equals about Rs 20,000 crore
Asheesh Pandey · Managing Director and CEO · p. 7
FCNR 1.5 to 2 billion equals about Rs 20,000 crore
“And let me tell you when we talk about 1.5 to 2 billion on the FCNR front, how much it comes to Indian rupees approximately? Around INR20,000 crores.”
One-offs
Added Rs 100 crore additional provision, total Rs 800 crore
Asheesh Pandey · Managing Director and CEO · p. 9
Added Rs 100 crore additional provision, total Rs 800 crore
“And this time also again we have put INR100 crores. So it means total INR800 crores”
Slippages flat; higher write-offs for gross NPA and tax planning
Dhirendra Jain · Chief Financial Officer · Q&A · p. 11
Slippages flat; higher write-offs for gross NPA and tax planning
“So slippages as you must be observing, the slippages are almost flat Q-o-Q, but the write-off is higher and to maintain the gross NPA and to have the proper tax planning, we need to write off.”
Higher write-off provisioning will not continue
Asheesh Pandey · Managing Director and CEO · Q&A · p. 11
Higher write-off provisioning will not continue
“No, it will not continue, Kunal. I would put it differently.”
Tax refund item: Rs 532 crore this quarter, Rs 562 crore March 2026, Rs 14 crore June 2025
Asheesh Pandey · Managing Director and CEO · Q&A · p. 16
Tax refund item: Rs 532 crore this quarter, Rs 562 crore March 2026, Rs 14 crore June 2025
“June 2025 INR14 crores, March 2026 INR562 crores, this quarter it is INR532 crores.”
Rs 700 crore additional provision put in Q4, not part of Tier 2, profit or PCR
Asheesh Pandey · Managing Director and CEO · p. 9
Rs 700 crore additional provision put in Q4, not part of Tier 2, profit or PCR
“not only that by putting our own money we have put INR700 crores of the additional provision, which is nowhere part of Tier 2 or part of your profit or part of your PCR.”
Risks
SMA 0, 1, 2 above Rs 5 crore about Rs 2,800 crore, Rs 1,000 crore below March
Asheesh Pandey · Managing Director and CEO · p. 5
SMA 0, 1, 2 above Rs 5 crore about Rs 2,800 crore, Rs 1,000 crore below March
“But then your bank is I think the best of the numbers, even INR1,000 crores less than the March figures, around INR2,800-odd in SMA 0, 1, 2 above INR5 crores.”
MSME: MSME stress exists and will continue as MSMEs depend on the economy
Ramasubramanian S · Executive Director · Q&A · p. 9
MSME: MSME stress exists and will continue as MSMEs depend on the economy
“Regarding the stress in MSME, yes, it was there -- it is there and it's going to be there because the MSME are depending on mainly on our economy.”
MSME: MSME stress is in low-value tickets, not medium or high-value
Ramasubramanian S · Executive Director · Q&A · p. 9
MSME: MSME stress is in low-value tickets, not medium or high-value
“And if you look at it, our stress in MSME sector also it is on the low value ticket, not on a very medium or high value ticket there is not much stress.”
Big recovery cases not coming; NCLT has more or less dried up
Ramasubramanian S · Executive Director · Q&A · p. 9
Big recovery cases not coming; NCLT has more or less dried up
“the bigger cases are not coming out actually, there is nothing much in the NCLT has more or less dried up.”
Recovery is more than slippages in the first quarter
Asheesh Pandey · Managing Director and CEO · p. 9
Recovery is more than slippages in the first quarter
“Point number two, our recovery is more than the slippages.”
Other
NACH registrations rose from 12,000-13,000 to 18,000 a day
Asheesh Pandey · Managing Director and CEO · p. 4
NACH registrations rose from 12,000-13,000 to 18,000 a day
“The NACH registration which we were doing around 12,000 to 13,000 per day is increased to 18,000.”
ecosystem banking: Ecosystem banking vertical has about 1,200 people, 118 centers and 12 hubs
Asheesh Pandey · Managing Director and CEO · p. 4
ecosystem banking: Ecosystem banking vertical has about 1,200 people, 118 centers and 12 hubs
“where we are having 1,200 plus people as a ecosystem banking vertical headed by CGM and then he is having seven-eight GMs and then 14 DGMs and then around 1,200 people, 118 centers and 12 hubs.”
ROA held at 1.36 for the last three quarters
Asheesh Pandey · Managing Director and CEO · p. 5
ROA held at 1.36 for the last three quarters
“And even the Q4 ROA was 1.36. So last three quarters we are maintaining the ROA of 1.36.”
Operating profit crossed Rs 8,000 crore; NII crossed Rs 10,000 crore
Asheesh Pandey · Managing Director and CEO · p. 5
Operating profit crossed Rs 8,000 crore; NII crossed Rs 10,000 crore
“OP is almost high for the bank for this crossing INR8,000 crores. Even the NIM is the highest level crossing INR10,000 crores.”
Q4 credit growth was around 7%
Asheesh Pandey · Managing Director and CEO · p. 8
Q4 credit growth was around 7%
“And certainly the Q4 growth you have seen is one of the best. It was around 7%.”
Sources
- Earnings call transcript, Q1 FY27 Filed 21 Jul 2026 · 18 pages
Management's own statements, quoted from its NSE filings. This page was read by AI and can contain mistakes: check the source pages before relying on any figure. No forecast or opinion of ours. Not investment advice.