Union Bank Of India (UNIONBANK) — Tipsheet

Union Bank deposits lag loans; CD ratio jumps 714 bps in Q1

Tipsheet Editorial — Thu, 02 Jul 2026 21:07:24 GMT

Gross advances rose 12.5% while deposits grew only 3.5%, pushing the credit-to-deposit ratio to 83.4% from a year earlier.

What’s new

Gross advances rose 12.5% YoY to ₹10.96 lakh crore.
Total deposits grew just 3.5% to ₹12.83 lakh crore.
CASA ratio improved to 35.1% from a year earlier.

Why it matters

The widening gap between loan and deposit growth signals a funding squeeze in the making. With an ₹8,000 cr capital raise approved in May, Union Bank has firepower, but deposit mobilisation will determine how fast it can deploy that capital without margin compression.

What we’re watching

Can CASA momentum continue in a rising rate environment?
Cost of deposits and impact on NIMs in the final results.
Deployment timeline of the approved capital raise.

The full read

Union Bank delivered a solid 12.5% rise in gross advances to ₹10.96 lakh crore in Q1 FY27, but deposit growth of just 3.5% tells a different story. The credit-to-deposit ratio (excluding bank deposits) jumped 714 bps to 83.4% from a year earlier. The bank is growing loans faster than it is raising deposits. A bright spot: the CASA ratio improved to 35.1% on an 11.7% rise in CASA deposits, which helps contain funding costs. The data is routine, a precursor to audited numbers, and holds no surprise. But the deposit-advance mismatch is real. With an ₹8,000 cr capital raise approved in May, Union Bank has the firepower. The open question is whether it can attract the deposits to put that capital to work without margin compression.

Primary source: BSE · NSE

Union Bank clears ₹8,000 cr capital raise, split between equity and debt

Tipsheet Editorial — Tue, 26 May 2026 14:21:49 GMT

The board approved up to ₹3,000 crore in equity and ₹5,000 crore in Basel III bonds. Government, regulator and shareholder approvals are still needed.

What’s new

Board approved raising up to ₹8,000 cr, split between ₹3,000 cr equity and ₹5,000 cr in Basel III bonds.
The equity can be via a public offer, rights issue or private placement. The route is not yet chosen.
The plan needs government, regulatory and shareholder approvals. No timeline was given.

Why it matters

Union Bank is building its balance sheet, not patching a loss. The equity component represents a 2.3% dilution at current market cap, which is modest. The bond component is larger, and its pricing will be the first test of investor appetite for the bank's credit.

What we’re watching

Whether the government, as majority owner, backs the equity component.
Pricing on the ₹5,000 cr bond issuance, which will set a benchmark.
The final choice of equity route, which determines dilution for existing holders.

The full read

Union Bank of India's board has cleared an ₹8,000 crore capital-raising plan, the largest component of which is ₹5,000 crore in Basel III-compliant bonds. The equity piece, up to ₹3,000 crore, can be raised through a public offer, rights issue or private placement. The board has not decided which route to take. That choice matters: a rights issue would avoid diluting existing holders, while a private placement would be faster. At 2.3% of market cap, the equity dilution is manageable. The bond piece at ₹5,000 crore is the bigger commitment, and its pricing will be the first real test of investor appetite. The plan is not yet executable. It needs government backing, regulatory clearance and a shareholder vote.

Primary source: BSE · NSE

Union Bank of India's board meets May 26 to pick its capital-raising route

Tipsheet Editorial — Thu, 21 May 2026 18:50:35 GMT

The bank is weighing an FPO, rights issue, QIP or private placement, plus Basel III bonds. No size or timeline is disclosed.

What’s new

Board will meet May 26 to approve a capital plan covering FPO, rights issue, QIP or private placement.
Bank is also considering Basel III-compliant bond issuances alongside the equity options.
No size, pricing or timeline for the raise was revealed.

Why it matters

A large public-sector bank floating every equity-raising option at once puts dilution on the table without committing to it. The specific amount and terms are not yet disclosed, making the May 26 meeting the first real decision point on both the instrument and the scale of the raise.

What we’re watching

Board approval or rejection on May 26 and the chosen instrument.
Quantum of capital sought and the intended regulatory capital ratio.
Pricing mechanics if it goes QIP or FPO.

The full read

Union Bank of India will convene its board on May 26 to decide how to raise fresh capital. The options span an FPO, rights issue, QIP, private placements and Basel III-compliant bonds. No size, pricing or timeline accompanied the disclosure. For a large-cap public-sector bank, the lack of a number leaves the dilution question entirely open. The bank is casting a wide net, which suggests it wants flexibility on timing and instrument rather than locking into a single structure. The formal board consideration is new information. What the filing does not say is why the capital is needed now. That answer will arrive on or after May 26.

Primary source: BSE · NSE