Union Bank of India (UNIONBANK)
Large CapFinancial Services stocks · Large cap · NSE
Union Bank of India is a public sector bank with a pan-India presence, operating 8,700 branches and 8,758 ATMs. It serves diverse customer segments including retail, agriculture, and MSME, with a significant focus on financial inclusion and digital banking initiatives.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend supports entry, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Average · 45/100Rev +1% YoY · PAT +27% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹27,427 Cr | +1.2% | +2.8% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹5,642 Cr | +27.4% | +2.5% |
| PAT margin | 20.6% | +423 bps | -6 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Union Bank of India reports strong Q1 FY2027 results with Net Profit up 29.54% YoY to ₹5,332 Cr and NII up 10.14% YoY to ₹10,037 Cr. Asset quality improved significantly with GNPA at 2.65% and NNPA at 0.47%.
The bank demonstrates robust financial performance with double-digit growth in Net Interest Income and Net Profit, coupled with consistent improvement in asset quality metrics. Strategic focus on RAM advances and digital initiatives supports future growth, despite some QoQ declines in deposits and overseas advances.
Global Advances by Segment (Jun-26)
Latest issuer-disclosed distribution across 5 reported categories.
RAM Advances Growth
RAM (Retail, Agriculture, MSME) Advances grew by 11.56% YoY to ₹6,08,095 Cr.
Digital Business
Digital channels generated ₹600 Cr+ in Retail Loans, ₹320 Cr+ in MSME Loans, and ₹6,500 Cr+ in Deposits in Q1 FY27.
Infrastructure & NBFCs Credit
Credit to Infrastructure grew 19.42% YoY and to NBFCs & HFCs grew 33.23% YoY.
Government Schemes
Active participation in schemes like PMSVANidhi (11.36 lakh accounts, ₹1,835 Cr sanctioned) and PM Mudra Yojana (1.53 lakh accounts, ₹4,868 Cr sanctioned in Q1FY27).
Branch Expansion
8 new branches were added in Q1 FY27, with a target of 150 new branches for FY26-27.
Digital Adoption
~11 lakh new users registered on Union Ease App and 8.2 Million registered users on UVConn WhatsApp Banking.
Improved Asset Quality
Consistent reduction in GNPA, NNPA, and slippage ratio, indicating better credit health.
Strong ESG Ratings
Received CARE Edge-ESG 1+ rating and Moody’s SQS2 (Very Good Sustainability Quality) for its Sustainable Financing Framework.
Overseas Advances Decline
Overseas Advances declined by 3.26% YoY and 6.52% QoQ.
Treasury Income Volatility
Treasury Income declined by 54.51% YoY.
Global Deposits Decline QoQ
Global Deposits declined by 1.80% QoQ to ₹12,83,366 Cr.
Concentration in NBFCs/HFCs
NBFCs and HFCs constitute 16.03% of domestic advances, representing a significant sectoral exposure.
SMA-2 Exposure
Outstanding SMA-2 amount for accounts >₹5 Cr was ₹1,157 Cr as of Jun-26.
Credit Cost Fluctuation
Credit cost increased QoQ from 0.16% in Mar-26 Q to 0.38% in Jun-26 Q.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing underlying business growth and seasonal trends in banking. QoQ comparison is vital for tracking sequential momentum, asset quality changes, and operational efficiency, especially for a financial services company.
Global Advances Growth
Global Advances grew by 12.50% YoY and 1.64% QoQ to ₹10,96,331 Cr.
Net Interest Margin (NIM)
NIM for Q1 FY2027 was 2.80%, improving by 16 bps QoQ from 2.64% in Mar-26 Q.
Gross Non-Performing Assets (GNPA)
GNPA stood at 2.65% in Jun-26 Q, improving by 87 bps YoY.
Net Non-Performing Assets (NNPA)
NNPA was 0.47% in Jun-26 Q, improving by 15 bps YoY.
Commitment to Compliance
Management's motto is 'Business First, Compliance Always', emphasizing strong governance and regulatory adherence.
Strengthening Governance & Risk Management
Creation of specialized departments for OTS settlements, NPA monitoring, and a unified Central Reconciliation, Transaction Monitoring & AML Vertical.
Enhancing Customer Service
Initiatives include feedback mechanisms, auto complaint tickets, customer education, and instant support via SMS and Digital Call Centre.
ESG Targets
The Bank has set emission reduction targets for Scope I and Scope II within its own operations, to be achieved by FY2034-35.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Interest Margin (NIM) | 2.80% | Sustained improvement or pressure from rising cost of funds. |
| GNPA/NNPA | 2.65% / 0.47% | Continued reduction in asset quality ratios and control over fresh slippages. |
| RAM Advances Growth | 11.56% YoY | Maintenance of double-digit growth in the high-yielding RAM segments. |
| Digital Business Contribution | ₹600 Cr+ Retail Loans, ₹320 Cr+ MSME Loans, ₹6,500 Cr+ Deposits (Q1 FY27) | Increasing share of digital channels in overall business generation and efficiency gains. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
77Bullishfull bull SMA stack · SMA20 +7.7% / mo · MACD −
Technical chart
UNIONBANKdaily · 1Y · AUTO-2.1%Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 57.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~7.2% over last month) — short-term momentum positive.
- RSI(14) at 57 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 9% off 52W high · 48% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 6.1% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +0.8%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 63 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 63 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 75.1%.
- Valuation contributes 29/30 to the score.
- Growth contributes 15/25 to the score.
Main drags
- Altman Z is 1.8, in distress territory.
- Cash flow is weaker at 3/10; verify the latest quarterly trend.
- Quality is weaker at 8/20; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 38th percentile of the scored universe and 56th percentile within Financial Services. Main check: financial discipline is weak at 48/100.
Healthy Trust Lite: Promoter holding is 74.8%. Key concern: Operating cash flow is negative at ₹-358 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 56th pctile, median 62 · Large: 20th pctile, median 73
124 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 74.8%.
- ▸Promoter pledge is zero.
- ▸6 years of positive FCF.
- ▸Debt/equity is 0.06.
Trust risks
- ▸Operating cash flow is negative at ₹-358 Cr.
- ▸Altman Z is 1.77.
- ▸ROCE is low at 6.3%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 6.92
- P/B
- 1.02
- EV/EBITDA
- —
- Market Cap
- 142916.00Cr
Profitability
- ROE
- 15.70%
- ROCE
- 6.30%
- ROA
- 1.30%
- Dividend Y
- 2.67%
Growth (CAGR)
- Revenue 5Y
- 9.00%
- EPS 5Y
- 47.00%
- Revenue 3Y
- 10.00%
- EPS 3Y
- 32.00%
Balance Sheet
- Debt/Equity
- 0.06
- Interest Coverage
- —
- Altman Z
- 1.77
- Book Value
- 183.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- -358.00 Cr
- EPS TTM
- 27.05
Shareholding
- Promoter Hold
- 74.76%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 77%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.