Strong earnings, higher fee income and lower provisions support growth as lender steps up overseas deposit mobilisation
State-owned Union Bank of India reported a nearly 30 per cent year-on-year rise in net profit for the April-June quarter, driven by healthy growth in interest income, higher fee earnings and lower provisions. The lender also announced plans to mobilise around $2 billion under a special non-resident Indian (NRI) deposit programme to strengthen its foreign currency resources.
The bank’s standalone net profit increased to Rs 5,332 crore during the first quarter of the 2026-27 financial year, compared with Rs 4,117 crore in the corresponding period last year. Growth was supported by an improvement in core banking operations and better asset quality, despite a marginal increase in credit costs.
-
Union Bank said it expects to raise about $2 billion through its foreign currency NRI deposit scheme, launched in response to the Reserve Bank of India’s recent measures aimed at encouraging overseas inflows
-
The initiative is expected to help banks attract foreign currency deposits from the Indian diaspora while supporting domestic liquidity
Bank officials said overseas branches and international banking centres would play a key role in attracting deposits from NRIs. The lender expects healthy participation from customers in key overseas markets where a large Indian community is present.
During the quarter, the bank also recorded steady growth in advances and deposits, while maintaining a focus on improving operational efficiency and asset quality. Lower provisioning requirements further supported profitability.
Union Bank indicated that it remains optimistic about credit demand during the current financial year, backed by continued economic activity and infrastructure spending. The bank said it would continue expanding its retail, agriculture and MSME lending portfolios while strengthening its digital banking services and international business operations.
