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Informist, Thursday, Jul. 16, 2026

By Diksha Tripathy 

MUMBAI – Union Bank of India said strengthening its current account and savings account ratio and accelerating growth in retail term deposits will remain its key priorities over the coming quarters, as the deposit mix continues to weigh on the bank's profitability, the senior management said during the post-earnings conference call with analysts Wednesday.

Responding to a question on deposit growth, the management said overall deposit mobilisation is not a concern for the bank. The current account and savings account ratio and retail term deposits are the areas of focus, senior officials said. The bank's total deposits rose 3.5% year-on-year to INR 12.83 trillion in the June quarter, compared with loan growth of nearly 13% during the same period.

The domestic current account and savings account ratio declined by 11 basis points sequentially to 35.10%. The management said improving the share of current account and savings account deposits, along with retail term deposits, remains its foremost priority.

"...Let us understand, in total deposit, there are three factors. One is the CASA, another is the retail term deposit, then bulk deposit. So, I think in CASA and retail, there is a huge growth in Union Bank of India. So, I think that is one notable, remarkable feature quarter to quarter," a senior official said.

The bank said it will continue to strengthen its deposit franchise going forward. During the June quarter, current account and savings account deposits were nearly INR 240 billion, while the combined average increase in current account and savings account deposits and retail term deposits stood at around INR 410 billion.

The management added that the bank has not slowed deposit mobilisation, noting that deposit maturities are spread throughout the year. It mobilised nearly INR 400 billion in deposits during Apr-Jun, but reiterated that its preference remained to raise low-cost current account and savings account deposits and retail term deposits rather than relying on bulk deposits.

At 1400 IST, shares of the bank were traded at INR 169.39 on the National Stock Exchange, down nearly 2% from Wednesday. For the June quarter, Union Bank reported net profit of INR 53.32 billion and total income of INR 318.06 billion.  End

Edited by Akul Nishant Akhoury

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