Improved asset quality and higher net interest earnings helped Union Bank of India (UBI) report 29.57% year-on-year (y-o-y) increase in net profit to ₹5,332 crore in the first quarter (Q1) of fiscal 2027.

Net interest income rose 10.15% to ₹10,037 crore in Q1-2027. Net interest margin (NIM) improved a mild 4 basis points (bps) to 2.8% in the June quarter from 2.76% a year ago period. The bank’s strategy will be to continue defending NIM, Asheesh Pande, MD and CEO of UBI, said at a media briefing.

The credit-to-deposit ratio also increased to 86.1% in the June quarter against 79.2% the same quarter last fiscal. Total deposits were up 3.52% to ₹12.8 lakh crore. Total loans increased at a much faster pace of 12.5% to ₹10.9 lakh crore.

The public sector bank’s ratio of current account to savings account (CASA) increased 258 bps y-o-y to 35.09% in the review quarter , but dipped 11 bps from the March quarter of fiscal 2026. Mr. Pande said 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 the UAE among their other five NRI branches and 20 other general branches that have NRI customers.