Union Bank Approves ₹19,000 Crore Overseas Debt Fundraising

Union Bank of India has approved a proposal to raise up to $2 billion (around ₹19,000 crore) through debt instruments. The approval was granted by the bank's board of directors.

According to a regulatory filing, the funds will be raised through debt issuances from the bank's Dubai and/or Sydney branches. The approval follows an earlier fundraising plan cleared in May 2026.

At that time, the lender approved raising up to ₹8,000 crore through a mix of equity and debt instruments to strengthen its capital base and support future growth.

The proposed debt issuance is a part of the bank's wider capital management strategy. Additional funds will be utilised by the lender to improve financial flexibility and support business expansion.

Union Bank Posted Strong Q1 FY27 Results

The bank reported a robust financial performance for the first quarter of FY27. Net profit rose 29.5% year-on-year to ₹5,33,230 lakh, compared with ₹4,11,553 lakh in the same quarter last year.

Net interest income (NII) increased 10% to ₹10,037 crore. It stood at ₹9,113 crore in the corresponding quarter of FY26.

Operating profit climbed 15.92% to ₹8,04,025 lakh. It was ₹6,93,595 lakh a year earlier.

The bank also reported an improvement in asset quality.

Net NPA eased to 0.47% from 0.62%. Provisions also fell to ₹97,339 lakh, compared with ₹1,66,727 lakh in Q1 FY26.

Shares Ended Lower

Despite the fundraising approval and strong quarterly performance, Union Bank's shares closed lower on Thursday. The stock ended 0.40% down at ₹170.40 on the National Stock Exchange (NSE). In comparison, the benchmark Nifty 50 gained 0.28% during the session.

Union Bank’s share price has risen 11.11% so far this year and 30.31% over the past 12 months.

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