How did Union Bank's deposit growth compare with loan growth?

Deposits grew only 3.5% against loan growth of 12.5%, widening the CD ratio by 714 bps to 83.4%.

What drove the improvement in CASA ratio?

CASA deposits expanded 11.7% YoY, faster than total deposits, lifting the ratio to 35.1%.

What does the ₹8,000 cr capital raise mean for this update?

Approved in May, the capital raise supports balance sheet expansion, but the deposit lag may force reliance on wholesale funding or slower lending.

When will the final audited results be released?

The provisional numbers are subject to review; final Q1 results are typically released within 45 days of quarter end.

Banks · Mega cap

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

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

— 2 earlier stories on Union Bank Of India →

UNIONBANK By Tipsheet Editorial 2 Jul 2026 · 9:07 PM IST Verify on BSE · NSE

Mkt cap₹1.33 lakh cr

P/E6.86×

ROE16.22%

Debt / eq.0.62

Div yld2.86%

83.4% Credit-to-deposit ratio (ex-bank deposits) in Q1 FY27

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 this 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.

Questions answered

How did Union Bank's deposit growth compare with loan growth?: Deposits grew only 3.5% against loan growth of 12.5%, widening the CD ratio by 714 bps to 83.4%.
What drove the improvement in CASA ratio?: CASA deposits expanded 11.7% YoY, faster than total deposits, lifting the ratio to 35.1%.
What does the ₹8,000 cr capital raise mean for this update?: Approved in May, the capital raise supports balance sheet expansion, but the deposit lag may force reliance on wholesale funding or slower lending.
When will the final audited results be released?: The provisional numbers are subject to review; final Q1 results are typically released within 45 days of quarter end.

Mentioned: ₹8,000 cr capital raise · 714 bps · CASA ratio 35.1%

Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Company snapshot

Union Bank Of India

Banks

₹1.25 L cr

P/E 6.41×

Latest quarter · Mar 2026

Net profit₹5,504 cr

Net margin+20.0%

EPS₹7.21

Returns & growth

Return on equity+16.2%

Sales CAGR+13.7%

EPS CAGR+2.1%

Story so far

All notes on UNIONBANK →

2 Jul 2026 · 9:07 PM IST Union Bank deposits lag loans; CD ratio jumps 714 bps in Q1
41d ago Union Bank clears ₹8,000 cr capital raise, split between equity and debt
46d ago Union Bank of India's board meets May 26 to pick its capital-raising route