Union Bank of India reported a 30.31% rise in quarterly profit as lending expanded far faster than deposits, putting the state-run lender’s funding strategy in focus.
Standalone net profit reached ₹5,537 crore (₹55.37 billion) in the three months ended Sept. 30, up from ₹4,249 crore a year earlier. Net interest margin rose to 2.86% from 2.67% a year earlier and 2.80% in the preceding quarter. The gross nonperforming-loan ratio fell to 2.42% from 3.29%, while the net ratio declined to 0.42% from 0.55%.
Global advances grew 18.53% year over year as of Sept. 30, compared with 6.88% growth in deposits. Union Bank Managing Director and CEO Asheesh Pandey put the bank’s domestic loan-to-deposit ratio at about 84%.
Pandey said the bank’s liquidity coverage ratio averaged 120% during the quarter. He identified current and savings accounts and retail term deposits as funding priorities and said the bank could draw on other sources as needed to support lending.
Union Bank shares closed at ₹180.70 on Oct. 19, gaining 5.25% for the session. A price series adjusted for splits and bonuses puts their five-year gain at approximately 300%. Mint reported that Systematix Institutional Equities raised its share-price target to ₹215 after estimating that quarterly profit exceeded its forecast by 5.3%.
The Reserve Bank of India (RBI) has set April 1, 2027, as the start date for its expected credit loss rules. Union Bank Executive Director Nitesh Ranjan estimated a ₹5,500 crore impact from the transition and said the bank had built an additional ₹1,000 crore provision buffer through the September quarter.
Union Bank’s investor calendar gives Jan. 31, 2027, as the tentative deadline for its December-quarter results.
