Union Bank of India Q1 Results FY27: PAT Rises 29.6% to Rs 5,332 Crore, GNPA Improves to 2.65%

Union Bank of India Q1 results FY27 were announced on Wednesday, 15 July 2026, with the public sector lender reporting a net profit of Rs 5,332 crore, up 29.6% from Rs 4,116 crore in the year ago quarter. Net interest income in the Union Bank of India Q1 results FY27 grew 10% year on year to Rs 10,037 crore from Rs 9,113 crore, while operating profit rose a sharper 15.8% to Rs 8,003 crore from Rs 6,909 crore.

Asset quality continued to improve, with gross NPA declining to 2.65% from 2.82% in the preceding quarter and net NPA easing slightly to 0.47% from 0.48%. Shares of Union Bank of India rose 1.68% to close at Rs 173.54 on the NSE.

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Union Bank of India Q1 results FY27 Financial Highlights

The June quarter delivered profit growth well ahead of NII growth, alongside continued asset quality improvement, a combination central to the Union Bank of India Q1 results FY27. The table below summarises the key numbers for the quarter.

Metric	Q1 FY27	Q1 FY26	YoY / QoQ Change
Net Profit (PAT)	Rs 5,332 Cr	Rs 4,116 Cr	+29.6% YoY
Net Interest Income (NII)	Rs 10,037 Cr	Rs 9,113 Cr	+10% YoY
Operating Profit	Rs 8,003 Cr	Rs 6,909 Cr	+15.8% YoY
Gross NPA	2.65%	2.82% (QoQ)	Improved
Net NPA	0.47%	0.48% (QoQ)	Improved

Provisions in the Union Bank of India Q1 results FY27 came in at Rs 979 crore, down sharply from Rs 1,665 crore in the year ago quarter and also lower than the Rs 1,055 crore reported in the preceding March quarter, reflecting the benefit of improving asset quality on the bank’s provisioning requirements.

Union Bank of India Q1 results FY27 Performance Analysis

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PAT growth of 29.6% comfortably outpacing NII growth of 10% in the Union Bank of India Q1 results FY27 points to the combined benefit of lower provisions and operating profit growing at a sharper 15.8% pace, showing the bank is converting a larger share of its operating income into bottom line profit.

The sequential improvement in gross NPA to 2.65% from 2.82% and the marginal improvement in net NPA to 0.47% from 0.48% continue a multi-quarter trend of balance sheet cleanup at the bank, supporting lower credit costs and the sharp decline in provisions this quarter.

Provisions falling to Rs 979 crore from Rs 1,665 crore a year ago in the Union Bank of India Q1 results FY27 was a major contributor to the outsized profit growth, and the extent to which this lower provisioning trend continues will be an important factor in sustaining the current pace of earnings growth.

Union Bank of India Q1 results FY27: Key Business Factors

1. Sharp Decline in Provisions

Provisions falling to Rs 979 crore from Rs 1,665 crore a year ago was a key driver of the profit growth in the Union Bank of India Q1 results FY27, directly reflecting the bank’s improving asset quality trajectory.

2. Continued Asset Quality Improvement

Gross NPA improving to 2.65% from 2.82% and net NPA easing to 0.47% from 0.48% on a sequential basis extends a consistent multi-quarter cleanup trend at the bank.

3. Operating Profit Growth Outpacing NII

Operating profit growing 15.8%, faster than the 10% NII growth in the Union Bank of India Q1 results FY27, suggests improving cost efficiency or other income contribution supporting the bank’s core profitability.

Dividend Details

No new dividend was announced specifically alongside the Union Bank of India Q1 results FY27. Investors should watch for the bank’s dividend history and future board meeting announcements to gauge its capital allocation approach going forward.

Union Bank of India Q1 results FY27 Outlook for the Full Year

Continued improvement in asset quality, if sustained, should support further moderation in provisioning costs through FY27, providing a tailwind to profit growth even if NII growth remains in the moderate high single digit range. Investors should track credit growth trends, deposit mobilisation, and further movement in GNPA and NNPA ratios in coming quarters.

Union Bank of India Stock Performance After the Q1 Results

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Union Bank of India share price rose 1.68% to close at Rs 173.54 on the NSE after the Union Bank of India Q1 results FY27, touching an intraday high of Rs 177.49 during the session.

The stock’s positive reaction reflects the market’s favourable read on the combination of strong profit growth and continued asset quality improvement, a pattern that has supported re-ratings across several public sector banks this earnings season.

Key Risks

Investors going through the fine print of the Union Bank of India Q1 results FY27 should also weigh the following risks.

1. NII Growth Trailing Profit Growth

With NII growth of just 10% against PAT growth of 29.6% in the Union Bank of India Q1 results FY27, a meaningful share of this quarter’s profit growth depended on lower provisions rather than core income expansion, which may not repeat at the same pace.

2. Margin Pressure from Deposit Competition

Intense competition for deposits among public sector and private banks could pressure net interest margins in coming quarters, a sector-wide theme this earnings season.

3. Credit Cycle Risk

While asset quality has improved steadily, any economic slowdown or sector-specific stress could reverse the provisioning benefits that supported this quarter’s profit growth.

Conclusion

Union Bank of India Q1 results FY27 show PAT up 29.6% to Rs 5,332 crore, NII up 10% to Rs 10,037 crore, and continued asset quality improvement with GNPA at 2.65% and NNPA at 0.47%, both improving sequentially. Sharply lower provisions and steady asset quality cleanup are the highlights of the Union Bank of India Q1 results FY27, against the risk of NII growth trailing profit growth. Investors should track provisioning trends and consult a SEBI-registered advisor before acting on the numbers.

Frequently Asked Questions on Union Bank of India Q1 results FY27

When were the Union Bank of India Q1 results FY27 announced?

Ans. The Union Bank of India Q1 results FY27 were announced on Wednesday, 15 July 2026, for the quarter ended 30 June 2026.

What is the PAT in Union Bank of India Q1 results FY27?

Ans. The PAT in Union Bank of India Q1 results FY27 stood at Rs 5,332 crore, up 29.6% from Rs 4,116 crore in Q1 FY26.

What was the NII in Union Bank of India Q1 results FY27?

Ans. Net interest income in the Union Bank of India Q1 results FY27 rose 10% year on year to Rs 10,037 crore from Rs 9,113 crore.

What is the asset quality in Union Bank of India Q1 results FY27?

Ans. Asset quality in the Union Bank of India Q1 results FY27 improved sequentially, with gross NPA at 2.65% versus 2.82% in the preceding quarter, and net NPA at 0.47% versus 0.48%.

Why did provisions fall in Union Bank of India Q1 results FY27?

Ans. Provisions in the Union Bank of India Q1 results FY27 fell to Rs 979 crore from Rs 1,665 crore a year ago, reflecting the benefit of continued asset quality improvement on the bank’s credit costs.

How did Union Bank of India share price react to the Q1 results FY27?

Ans. Union Bank of India share price rose 1.68% to close at Rs 173.54 on the NSE after the Union Bank of India Q1 results FY27.

Is Union Bank of India a good buy after the Q1 results FY27?

Ans. The Union Bank of India Q1 results FY27 show strong profit growth and improving asset quality, though NII growth trailed profit growth, meaning provisioning trends bear watching. This article is for educational purposes only. Consult a SEBI-registered advisor before investing.