Union Bank of India — Q1 FY27 earnings call
Summary generated by AI from the official transcript Union Bank of India filed with BSE on 21 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Union Bank of India reported its highest-ever quarterly profit for Q1 FY27, with the CFO and MD detailing improvements in NIM, cost-to-income ratio, and asset quality metrics. Management described a strategy of shedding bulk deposits in favour of CASA and retail term deposits, which reduced the cost of deposits by 18 basis points during the quarter. The bank also discussed provisioning related to expected credit loss (ECL) transition, MSME stress from a nationwide customer outreach exercise, and growth plans across corporate, retail, agriculture and MSME segments.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Average CASA: around INR24,000 plus crores (Q1 FY27)
p. 4
“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”
Asheesh Pandey, page 4 of the filed PDF · View the filing
Average RTD: INR17,000 crores (Q1 FY27)
p. 4
“RTD we have maintained average as a INR17,000 crores, total put together INR41,000 crores”
Asheesh Pandey, page 4 of the filed PDF · View the filing
Capital Adequacy Ratio (CRAR): 18.46% (Q1 FY27)
p. 4
“the first thing is that we have a capital base of 18.46%, a robust capital”
Asheesh Pandey, page 4 of the filed PDF · View the filing
Credit-Deposit ratio: 86% (Q1 FY27)
p. 4
“March 2025 somewhere in that we were at 74% level and today we are at 86% level, it means around 12% growth”
Asheesh Pandey, page 4 of the filed PDF · View the filing
ROA: 1.36 (Q4 FY26 and prior quarters)
p. 5
“even the Q4 ROA was 1.36. So last three quarters we are maintaining the ROA of 1.36”
Asheesh Pandey, page 5 of the filed PDF · View the filing
Cost-to-income ratio improvement: almost 500 basis points (quarter-on-quarter improvement)
p. 5
“cost-to-income we told we are working hard on it and almost 500 basis points, 5 percentage points we have come down”
Asheesh Pandey, page 5 of the filed PDF · View the filing
Operating Profit: crossing INR8,000 crores (Q1 FY27)
p. 5
“OP is almost high for the bank for this crossing INR8,000 crores”
Asheesh Pandey, page 5 of the filed PDF · View the filing
NIM: 2.80 (Q1 FY27)
p. 17
“the last quarter when we saw 2.64, we said it is bottomed out and we have come with 2.80”
Asheesh Pandey, page 17 of the filed PDF · View the filing
SMA above INR5 crores (SMA 0,1,2): around INR2,800-odd crores (Q1 FY27)
p. 5
“even INR1,000 crores less than the March figures, around INR2,800-odd in SMA 0, 1, 2 above INR5 crores”
Asheesh Pandey, page 5 of the filed PDF · View the filing
Additional provision set aside for ECL: INR800 crores (cumulative as of Q1 FY27)
p. 9
“So it means total INR800 crores and I think any shareholder, investor, or any stakeholder for that, whether regulator or Government of India, will feel good”
Asheesh Pandey, page 9 of the filed PDF · View the filing
Deposit cost reduction: 18 bps (Q1 FY27)
p. 5
“actually because of this strategy only the deposit cost has reduced by 18 bps”
Asheesh Pandey, page 5 of the filed PDF · View the filing
PSLC income: INR217 crores (Q1 FY27)
p. 12
“So PSLC last year this quarter was zero, this year this quarter is INR217 crores.”
Dhirendra Jain, page 12 of the filed PDF · View the filing
Total ECL provisioning requirement: around INR11,300 crore (transition to ECL framework)
p. 13
“ECL is around INR6,000 crores total, the total requirement is around INR11,300 crore, but we are carrying INR5,500 crores of additional provision”
Asheesh Pandey, page 13 of the filed PDF · View the filing
LCR: average 121 basis points (Q1 FY27)
p. 6
“LCR our stands at average 121 basis points and our board approved is 107, RBI threshold is 100%”
Asheesh Pandey, page 6 of the filed PDF · View the filing
ECLGS sanctioned and disbursed: INR14,000 crores to INR15,000 crores sanctioned; INR10,000 crores disbursed (Q1 FY27)
p. 9
“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”
Ramasubramanian S, page 9 of the filed PDF · View the filing
Domestic yield on advances: 8.01% (Q1 FY27)
p. 16
“it is actually domestic our yield on advances is 8.01%. I think, and the global yield on advances is 7.90%.”
Asheesh Pandey, page 16 of the filed PDF · View the filing
AFS reserve: around -INR345 crores (as of Q1 FY27)
p. 17
“It is at around -INR345 crores, so reduction of around INR438 crores.”
Omprakash Karwa, page 17 of the filed PDF · View the filing
Income tax refund income: INR532 crores (Q1 FY27)
p. 16
“It was INR14 crores only. June 2025 INR14 crores, March 2026 INR562 crores, this quarter it is INR532 crores.”
Asheesh Pandey, page 16 of the filed PDF · View the filing
Tax provision on operating profit: INR1,691 crores (Q1 FY27)
p. 12
“Even our tax provision we have doing fully, so it is around INR1,691 crores.”
Asheesh Pandey, page 12 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Credit growth — industry plus 1%
stated as an aspiration by Asheesh Pandey
p. 15
“So certainly, in the entire credit growth, if you take, we'll like to grow with the industry whatsoever is going plus 1%.”
Asheesh Pandey, page 15 of the filed PDF · View the filing
Bulk deposit to total deposit ratio — 1.15 percentage points · one year, two year, three year down the line
stated as an aspiration by Asheesh Pandey
p. 6
“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”
Asheesh Pandey, page 6 of the filed PDF · View the filing
FCNR mobilization — 1.5 to 2 billion · till September
stated conditionally by Asheesh Pandey
p. 6
“we aspire to not aspire, but it is an achievable we will be in the position to garner 1.5 to 2 billion going forward till September”
Asheesh Pandey, page 6 of the filed PDF · View the filing
RAM sector growth (MSME, agriculture, retail) — better than 18% to 20%
stated as an aspiration by Asheesh Pandey
p. 8
“we aim to move better than 18% to 20% in these three sectors going forward”
Asheesh Pandey, page 8 of the filed PDF · View the filing
Recovery for the year — INR4,500 crores to INR5,000 crores · entire year
stated as an aspiration by Asheesh Pandey
p. 12
“it will be more around INR4,500 crores to INR5,000 crores in the entire year, which is again much more than the last year”
Asheesh Pandey, page 12 of the filed PDF · View the filing
Remaining ECL provisioning — around INR6,000 crores · before 31st March
stated firmly by Asheesh Pandey
p. 13
“this has to be done somewhere in the 31st of March before that, no? Because from 1st it is applicable.”
Asheesh Pandey, page 13 of the filed PDF · View the filing
OFCB fundraise — 200 to 300 million
stated conditionally by Asheesh Pandey
p. 7
“this is the total plan on the scheme given by the Reserve Bank of India and the government”
Asheesh Pandey, page 7 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said deposit growth is not an issue given strong capital, and it plans to prioritize CASA/RTD over bulk deposits while mobilizing 1.5-2 billion FCNR by September.
Answered by Asheesh Pandey
Asked by Mahrukh Adajania: When will deposit growth pick up given the gap versus loan growth, and how much FCNR can be mobilized?
p. 6
“we aspire to not aspire, but it is an achievable we will be in the position to garner 1.5 to 2 billion going forward till September”
Asheesh Pandey, page 6 of the filed PDF · View the filing
Management explained the March quarter had a one-off large recovery from a Supreme Court order, and confirmed MSME stress exists mainly in low-ticket, government-scheme-covered accounts.
Answered by Ramasubramanian S
Asked by Ashok Ajmera: Why has recovery from written-off accounts dropped and NPA provisions risen this quarter, and is there stress in MSME?
p. 9
“if you remove that, more or less we are in tune with that because as already also we have explained, the bigger cases are not coming out actually”
Ramasubramanian S, page 9 of the filed PDF · View the filing
Management clarified write-offs were for balance sheet cleaning and tax planning and would not continue at this pace.
Answered by Asheesh Pandey
Asked by Kunal Shah: Is the higher NPA provisioning this quarter linked to write-offs, and will it continue?
p. 11
“No, it will not continue, Kunal. I would put it differently.”
Asheesh Pandey, page 11 of the filed PDF · View the filing
Management stated total requirement is about INR11,300 crore, of which INR5,500 crore (including INR800 crore extra) is already provided, leaving about INR6,000 crore remaining.
Answered by Asheesh Pandey
Asked by Dixit Doshi: What is the estimated ECL provisioning requirement going forward?
p. 13
“ECL is around INR6,000 crores total, the total requirement is around INR11,300 crore, but we are carrying INR5,500 crores of additional provision”
Asheesh Pandey, page 13 of the filed PDF · View the filing
Management said Maharashtra exposure has not shown impact yet and MSME stress is being proactively managed via customer meets and targeted relief measures.
Answered by Asheesh Pandey
Asked by Anand Dama: What is the asset quality outlook for MSME and Agri, particularly given the Maharashtra farm loan waiver?
p. 14
“MSME also we have not seen anything negative up till now. Let us see going forward.”
Asheesh Pandey, page 14 of the filed PDF · View the filing
Management reiterated a policy of not buying IBPC, targeting industry-plus-1% credit growth, with over INR1,00,000 crore corporate sanctions pending disbursement.
Answered by Amresh Prasad
Asked by Jai Mundhra: What is the bank's overall growth outlook and corporate segment IBPC policy?
p. 15
“IBPC is not we are not thinking, we are thinking not thinking of buying it, we are selling it.”
Amresh Prasad, page 15 of the filed PDF · View the filing
Management attributed it partly to foreign branch syndication dynamics and said domestic yields would improve as lower-yielding portfolio is converted to higher-yielding assets.
Answered by Asheesh Pandey
Asked by Param Subramaniam: Why did yield on advances decline this quarter and what will drive NIM expansion?
p. 16
“So domestic actually, we are working in a fashion which we have told, that many of our portfolio which was lower yielding, we have converted to higher yielding.”
Asheesh Pandey, page 16 of the filed PDF · View the filing
Management and CFO quantified a net benefit of about 2.5% to 3% from changes in run-off factor treatment for society/trust accounts.
Answered by Sowmya Sridhar
Asked by Nitin Aggarwal: How much of the LCR improvement came from new regulatory guidelines?
p. 17
“On society, trust AOPs there was a reduction from 100% run-off to 40% run-off. So, net it was around INR4,500 -- 2.5% to 3%. That was the net.”
Sowmya Sridhar, page 17 of the filed PDF · View the filing
Risks flagged
MSME sector stress linked to broader economic instability
p. 9
“When the economy is very, very in a very unstable condition, automatically there will be stress on the MSME portfolio.”
Ramasubramanian S, page 9 of the filed PDF · View the filing
Gold loan portfolio de-growth due to compliance-driven changes
p. 16
“if you see the gold loan portfolio March and this time, actually there is a de-growth of around INR2,500 crores to INR3,000 crores”
Asheesh Pandey, page 16 of the filed PDF · View the filing
SMA 2 increase in the quarter
p. 8
“the SMA 2 has gone up by almost INR350 crores”
Ashok Ajmera, page 8 of the filed PDF · View the filing
Global disruptions such as the Russia-Ukraine conflict affecting oil prices, trade linkages, logistics and currency
p. 3
“how it is impacted, the Russia-Ukraine conflict.”
Asheesh Pandey, page 3 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.