Union Bank of India's board of directors has approved raising foreign currency funds of up to $2 billion through a Medium Term Note (MTN) program, which roughly equates to ₹19,145.93 crore. According to latest reports, the board approved this strategic move on July 30, 2026, specifically through the bank's Dubai and/or Sydney branches under an updated MTN framework. The approval was made during a board meeting that commenced at 3:45 p.m. and concluded at 5:25 p.m. on July 30, 2026. This represents a significant expansion from the bank's previous fundraising efforts, allowing the bank to raise foreign currency debt in tranches, diversifying funding channels beyond domestic markets and optimizing its cost of foreign currency borrowing from global institutional investors. The decision to raise USD 2.00 Billion indicates a substantial appetite for foreign currency funding, with the bank gaining flexibility to issue notes in various tenors and currencies as market conditions evolve.
Union Bank of India reported robust financial results for the first quarter of financial year 2027 (Q1FY27), as reported by Essential Business Intelligence. The state-owned lender profit increased 29.57% year-on-year to ₹5,332 crore, compared to ₹4,115.53 crore in the same quarter last year. The bank's net interest income (NII) grew 10.15% YoY to ₹10,037 crore in the June quarter of FY27, from ₹9,113 crore in the June quarter of FY26. Operating profit climbed 15.8% annually to ₹8,003 crore in Q1FY27, from ₹6,909 crore in the same quarter year ago. Additionally, Net Interest Margin expanded to 2.8% in Q1 FY27, up from 2.64% in the preceding quarter, demonstrating improved profitability metrics.
According to Essential Business Intelligence, Union Bank's asset quality showed significant improvement in Q1FY27. Gross non-performing assets (NPA) improved to 2.65% from 2.82% in the previous quarter (Q4FY26). Net NPA stood at 0.47% in Q1FY27, as against 0.48% in Q4FY26. The bank's provisions came in at ₹979 crore in Q1FY27, compared to ₹1,665 crore in the same quarter year ago (Q1FY26). Under the RBI's temporary foreign currency mobilization scheme, the bank had successfully garnered USD 106 million in NRI deposits as of mid-July 2026, working toward a target of USD 2 billion by September 30, 2026.
The bank maintains a healthy Capital Adequacy Ratio of 18.46% as of June 30, 2026, ensuring strong capital buffers for the fundraising initiative. In May 2026, the board had approved an umbrella capital plan of up to ₹8,000 crore, which included raising up to ₹5,000 crore via Basel III-compliant debt (including foreign currency bonds). This MTN program provides a non-dilutive capital cushion, preserving equity value while reinforcing the strong CRAR. The use of Dubai and Sydney branches highlights the bank's expanding international footprint and ability to leverage offshore entities for capital raising. By utilizing these overseas branches, Union Bank of India gains access to regional liquidity pools with potentially favorable terms compared to domestic borrowing costs, helping to optimize capital costs and manage balance sheet currency exposures in a volatile global interest rate environment.
As of July 30, 2026, Union Bank of India shares closed at ₹170.40 on NSE, with a trading range of ₹167.90 to ₹171.08. The stock has shown a 1.18% decline over the past month and maintains a market capitalization of ₹1,30,077 crore. The bank's 52-week high stands at ₹205.49 and 52-week low at ₹124.64, with the current trading price falling within the circuit range of ₹153.97 to ₹188.19. The stock's book value per share is ₹174.82 with a PE ratio of 6.69 and PB ratio of 0.97. Foreign Institutional Investors have decreased their holdings from 9.37% to 8.63% in June 2026. The disclosure was made in compliance with Regulation 29(1)(d), Regulation 29(2), and Regulation 50(1)(d) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, ensuring transparency in the bank's financial strategy.
