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Earnings Call

Union Bank of India Earnings Call: Key Takeaways

Union Bank reports strong Q1 FY27 performance with Net Profit growing 29.57% YoY to ₹5,332 Cr. Focus remains on RAM credit growth and asset quality improvement.

Highlights
MarginsNIM improved to 2.80%, up 16 bps QoQ.
Order bookGlobal Advances reached ₹10,96,331 Cr.
Demand visibilityStrong credit demand in MSME (16.49%) and Retail (12.06%).
Management confidenceHigh, emphasizing 'Business First, Compliance Always' motto.

Growth

Global advances grew 12.5% YoY; RAM advances up 11.56%. Operating profit rose 15.83% YoY to ₹8,003 Cr.

Outlook

Targeting 150 new branches in FY27. Management maintains focus on 'Business First, Compliance Always' with a diversified credit portfolio.

Risks

Global deposit growth relatively slow at 3.50% YoY. Domestic CASA ratio slightly moderated to 35.10%.

Last quarter's promises, checked

Delivered

  • Defend NIM at 2.76% → delivered 2.80% (= BEAT)
  • Credit growth Q-o-Q > 4% → delivered ~9.6% Q-o-Q (= BEAT)
  • Open 75 branches in FY26 → targeting 150 in FY27 (= BEAT)

Partly delivered

  • Maintain PCR at ~95% → delivered 95.05% (= PARTIAL)

Missed

  • RAM sector growth target 20-22% → delivered 11.56% (= MISS)
Source

Earnings Call filed with NSE, NSE: UNIONBANK. Summary written with AI assistance from the document.

Read the document ↗

Union Bank of India: key numbers

Share price
₹180.20
Market cap
₹1,37,558 Cr
Revenue (annual)
₹1,06,799 Cr
Net profit (annual)
₹19,430 Cr
P/E (TTM)
6.7×Sector 22.0×
Promoter holding
74.76%+0.00% QoQ
FII holding
8.63%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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