Union Bank of India will continue to defend NIM, make it better, says MD
This story was originally published at 17:29 IST on 15 July 2026
Register to read our real-time news.Informist, Wednesday, Jul. 15, 2026
Please click here to read all liners published on this story
--Union Bank: Will continue to defend NIM, make it better
--CONTEXT: Union Bk of India mgmt speaking at post earnings press conference
--Union Bank: Actively approaching overseas customers for FCNR(B) desposits
--Union Bank: Spent INR 18 bln to INR 20 bln on IT this year
--Union Bank: Raised $105 mln via FCNR(B) desposits so far
--Union Bank: Reduced bulk deposits worth INR 680 bln in Apr-Jun
--Union Bank: Total contingency provision at INR 8 bln at end of Jun
--Union Bank: Added INR 1 bln to contingency provision in Apr-Jun
--Union Bank: Hold 2.29% of NDTL as excess SLR
--Union Bank: Aim to raise up to $2 bln via FCNR (B) deposits till Sept
--Union Bank: Expect recovery of INR 50 bln in FY27
MUMBAI – Union Bank of India will continue to defend the net interest margin and try to improve it, Managing Director Asheesh Pandey told a post-earnings press conference Wednesday. The current inflows through foreign currency non-resident bank deposists are expected to support the bank, Pandey said.
The bank's net interest margin for the June quarter was 2.80%, up from 2.64% in the March quarter and 2.76% in the June quarter a year ago. Although the bank is positive about a "better" margin in upcoming quarters, Pandey did not offer any target owing to the uncertainties in the global economy.
Union Bank's net profit rose nearly 30% on year to INR 53.32 billion, against analysts' estimate of INR 45.73 billion. On a sequential basis, the profit recorded only marginal growth.
For the June quarter, the provisions of Union Bank fell over 41% on year to INR 9.79 billion, from INR 16.65 billion in the corresponding quarter a year ago. The provisions fell over 7% on a quarterly basis.
Union Bank is stepping up efforts to mobilise foreign currency deposits from non-resident Indians, targeting up to $2 billion in foreign currency non-resident bank deposits by September as banks seek to shore up foreign currency resources following the Reserve Bank of India's relaxation of norms, Pandey said. The bank has already mobilised around $105 million through FCNR(B) deposits and is actively reaching out to customers overseas to accelerate collections, the management said.
Alongside its FCNR(B) deposit mobilisation drive, Union Bank significantly pared its reliance on high-cost wholesale funding during the June quarter. The bank reduced bulk deposits worth INR 680 billion during the quarter, reflecting its strategy of improving the liability mix and lowering funding costs. The management said the bank currently holds excess statutory liquidity ratio holdings equivalent to 2.29% of its net demand and time liabilities, providing it with adequate liquidity buffers.
On the technology front, Union Bank said it has invested between INR 18 billion and INR 20 billion in the current financial year to strengthen its digital capabilities, cybersecurity infrastructure, and technology platforms as part of its long-term transformation strategy.
The bank also continued to maintain additional buffers against unforeseen stress. It added INR 1 billion to its contingency provisions during the June quarter, taking the total contingency provision to INR 8 billion at the end of June.
On asset quality, the management expressed confidence in recoveries, saying it expects to recover around INR 50 billion during the current financial year, which could support credit costs and profitability. Shares of the bank ended at INR 172.38 on the National Stock Exchange, up 1% from Tuesday. The bank reported its earnings during the day's trading session. End
US$1 = INR 96.25
Reported by Kabir Sharma and J. Navya Sruthi
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
