Union Bank of India’s first quarter (Q1FY27) net profit rose by a healthy 29.54 per cent year-on-year (y-o-y) at ₹5,332 crore on the back of an increase in net interest income, decline in provisions and tight leash on operating expenses. India’s fifth-largest public sector bank had reported a net profit of ₹4,116 crore in the year-ago quarter.MD & CEO Asheesh Pandey said the bank’s operating profit (at ₹8,003 crore) crossed the ₹8,000-crore mark for the first time. Further, the bank will defend the net interest margin (which improved a shade to 2.80 per cent from 2.76 per cent in Q1FY26) and make it better.FCNR (B) depositsHe noted that the bank will mobilise about $1.5-2.0 billion via fresh Foreign Currency Non-Resident (Bank)/ FCNR (B) deposits under the RBI’s concessional swap window, which is available till September-end 2026. Since early June 2026, when the RBI announced measures to attract foreign capital, the bank has raised $105 million from NRIs via FCNR (B) deposits without providing any leverage.Pandey said plans are afoot to mop up around $200 million to $300 million via overseas foreign currency borrowing (OFCB). Going forward, the bank may mobilise funds via an Employee Stock Purchase Scheme (ESPS) at an appropriate time. In the reporting quarter, UBI’s net interest income (difference between interest earned and interest expended) was up 10 per cent y-o-y at ₹10,037 crore (₹9,113 crore in the year-ago period).Non-interest income, including fee-based income, treasury income and recovery in written-off accounts, edged up about 3 per cent y-o-y to ₹4,603 crore (₹4,486 crore).The Gross Non-Performing Assets (GNPAs) position improved to 2.65 per cent of gross advances as of June-end 2026, against 3.52 per cent as of June-end 2025. The net NPAs position, too, improved to 0.47 per cent of net advances against 0.62 per cent.Global advances increased by 12.50 per cent y-o-y to ₹10,96,331 crore as of June-end 2026 on the back of a 13.11 per cent y-o-y increase in domestic advances (to ₹10,61,128 crore), even as overseas advances declined 3.26 per cent y-o-y (to ₹35,203 crore).The growth in domestic advances was powered by a 16.49 per cent increase in MSME advances, followed by large corporates (15.32 per cent), retail (12.06 per cent) and agriculture (6.75 per cent). Global deposits rose 3.50 per cent y-o-y to stand at ₹12,83,366 crore as of June-end 2026. Within this, domestic deposits nudged up 3.49 per cent y-o-y to stand at 12,82,770.Low-cost CASA (current account, savings account) deposits rose to 35.10 per cent of total deposits, against 32.52 per cent in the year-ago quarter. UBI shares closed at ₹172.40 apiece, up 1.08 per cent over the previous close on BSE.Published on July 15, 2026