Mumbai: State-owned Union Bank of India reported a strong financial performance for the first quarter of FY27, posting a nearly 30 per cent year-on-year rise in net profit, driven by healthy growth in net interest income, higher operating profit and improved asset quality.
Following the announcement of the quarterly results, the bank’s shares climbed over 4 per cent during intraday trade on Wednesday.
Net profit rises to Rs 5,332 crore
Union Bank of India reported a net profit of Rs 5,332 crore for the quarter ended June 2026 (Q1FY27), registering a 29.6 per cent increase from Rs 4,116 crore reported in the corresponding quarter of the previous financial year.
The robust earnings growth reflects improved operational performance and lower provisioning during the quarter.
Net interest income grows 10%
The bank’s net interest income (NII), a key indicator of core banking performance, increased 10 per cent year-on-year to Rs 10,037 crore in Q1FY27, compared with Rs 9,113 crore in the same period last year.
Higher lending activity and steady interest income contributed to the growth in the bank’s core earnings during the quarter.
Operating profit records healthy growth
Union Bank’s operating profit rose 15.8 per cent year-on-year to Rs 8,003 crore, up from Rs 6,909 crore reported in Q1FY26.
The improvement in operating profit indicates continued growth in the bank’s core business and operational efficiency.
Asset quality improves further
The lender also reported an improvement in asset quality during the June quarter.
Gross Non-Performing Assets (GNPA) declined to 2.65 per cent in Q1FY27 from 2.82 per cent in the March quarter (Q4FY26).
Similarly, Net Non-Performing Assets (NNPA) improved marginally to 0.47 per cent, compared to 0.48 per cent in the previous quarter.
The continued reduction in bad loans reflects the bank’s sustained focus on recovery and prudent credit risk management.
Provisioning declines sharply
Union Bank’s provisions fell significantly during the quarter.
The bank set aside Rs 979 crore towards provisions in Q1FY27, compared with Rs 1,665 crore in the corresponding quarter of FY26.
Lower provisioning requirements contributed to the improvement in the bank’s bottom line.
Shares rally after earnings announcement
Investor sentiment remained positive following the strong quarterly performance.
Union Bank of India shares rose as much as 4.07 per cent during intraday trade to touch Rs 177.50 on the BSE.
At around 12.43 pm, the stock was trading 2.52 per cent higher at Rs 174.85, outperforming the broader market. During the same period, the BSE Sensex was up 0.52 per cent at 77,452.
The bank’s stock has a 52-week high of Rs 205.45 and a 52-week low of Rs 124.55. It is part of the BSE 200 index.
The strong growth in profitability, improving asset quality and lower provisioning underline Union Bank of India’s continued operational momentum as it enters FY27.