Union Bank of India Q1 profit surges 30% as lender targets $1.5-2bn in foreign deposits

Strong net interest income and lower provisions drove the public sector lender's bottom-line growth, while management sets ambitious overseas funding goals.

By Handelsavisen Newsroom · Automated 2026-07-16 16:35 UTC · 1 min read Last updated: 2026-07-16 21:37 UTC

Union Bank of India reported a 29.5% year-on-year increase in net profit for the first quarter of fiscal 2027, reaching ₹5,332 crore.

The public sector lender attributed the bottom-line expansion to higher net interest income, a reduction in loan loss provisions, and disciplined control over operating expenses.

5 billion and $2 billion in fresh foreign deposits, signaling confidence in its global banking capabilities and access to offshore liquidity pools.

The results underscore a broader recovery trend among India's state-owned banks, which have benefited from improved asset quality and stable credit growth.

Union Bank's performance mirrors that of peers such as Bank of Maharashtra, which also posted strong quarterly gains driven by similar operational efficiencies.

Beyond domestic profitability, the bank is actively pursuing international funding sources.

Management has set a target to raise between $1.5 billion and $2 billion in fresh foreign deposits, signaling confidence in its global banking capabilities and access to offshore liquidity pools.