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Informist, Monday, Oct. 19, 2026

 

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--Union Bank: Hold excess SLR worth INR 300 bln as of Sept 30 
--Union Bank on recovery from Subhash Chandra: Will see how things move 
--Union Bank: See impact of INR 1 bln from new IRDAI commission norms 
--Union Bank: Have corporate credit pipeline of over INR 1 tln as of Sept 30 
--Union Bank: Actively evaluating opening branch in GIFT City 
--Union Bank: Aim to improve CASA ratio to 36% 
--Union Bank: Aim to grow NIM to above 3% in coming qtrs 
--Union Bank: Expect to improve NIM further from hereon 
--Union Bk: Extra provisions to aid transition to expected credit loss norms 
--Union Bank: Made additional provision of INR 2 bln in Jul-Sept 
--Union Bank: Raised $2.2 bln of FCNR(B) deposits in Jul-Sept 
--Union Bank: Have reduced bulk deposits by INR 270 bln Jul-Sept 
--Union Bk MD: Plan to open 150 branches in FY27 
--Union Bk MD: Remian focused on shedding high cost bulk deposits 
--Union Bk MD: 70% of our FCNR(B) deposits in the 5-yr tenure 
--Union Bk MD: Consistently improving margins a key priority 
--CONTEXT: Comments from Union Bk of India mgmt at post-earnings press meet 
--Union Bk MD: RBI policies to aid FX inflows bolstered liquidity 
 

 

 

 

MUMBAI – Union Bank of India aims to raise its net interest margin above 3% in the coming quarters while continuing to reduce its reliance on high-cost bulk deposits, the bank's management said at a press conference following the earnings announcement.

 

The bank's NIM rose to 2.86% in Jul-Sept from 2.80% in Apr-Jun. Management expects it to improve further, citing recent margin improvements despite a challenging interest-rate environment. The bank is focused on improving profitability, maintaining asset quality, and pursuing sustainable credit growth, Managing Director Asheesh Pandey said.

 

Union Bank's corporate credit pipeline exceeded INR 1 trillion as of Sept. 30, indicating a strong flow of potential lending opportunities. The bank is considering opening a branch at Gujarat International Finance Tec-City, or GIFT City, to expand its international banking presence.

 

The lender held excess statutory liquidity ratio securities worth INR 300 billion as of Sept. 30, providing a liquidity buffer. Management said the Reserve Bank of India's measures to attract foreign currency inflows had bolstered liquidity in the banking system.

 

Union Bank raised $2.2 billion through foreign currency non-resident (bank) deposits in Jul-Sept, with around 70% of the deposits in the five-year tenure, management said. The bank also reduced bulk deposits by INR 270 billion during the quarter as it continued to focus on lowering funding costs.

 

The bank aims to increase its current account and savings account ratio to 36% from around 35% currently, as it seeks to strengthen its low-cost deposit base. Management said improving margins remains a key priority.

 

Union Bank plans to open 150 branches during 2026-27 (Apr-Mar) as part of its efforts to expand its reach and strengthen its deposit franchise. The bank made an additional provision of INR 2 billion in Jul-Sept to build a buffer ahead of the transition to expected credit loss-based provisioning norms. Management said the additional provisions would help prepare the bank for the transition.

 

The lender expects an impact of around INR 1 billion from the Insurance Regulatory and Development Authority of India's proposed insurance commission norms, management said. 

Asked about potential recoveries from Essel Group Chairman Subhash Chandra, management said the bank would assess how developments as they unfold. Union Bank of India (UK) Ltd. has challenged the National Company Law Tribunal's approval of the resolution plan in Chandra's personal insolvency case. 

 

The bank's net profit rose over 30% on year to INR 55.37 billion in the September quarter. On Monday, the bank's shares ended 5.6% higher at INR 181.20 on the National Stock Exchange.  End

 

Reported by Kabir Sharma and Diksha Tripathy 

Edited by Saji George Titus

 

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