Union Bank of India’s RAM segment to grow 10-15% in FY26, says ED Nitesh Rajan

Union Bank of India

Union Bank of India’s Retail, Agri and MSME (RAM) segments is expected to grow around 10-15 percent in the current financial year, said Executive Director Nitesh Ranjan on July 19.

"RAM sector growth will continue to report the double digit in the range of 10 percent to 15 percent," Ranjan said during the post earnings press conference.

In April-June quarter, RAM sector grew by over 10 percent on back of strong growth in retail and MSME.

According to the press release, retail segment of the bank eode 25.63 percent on-year to Rs 2.29 lakh crore in April-June quarter.

MSME advances grew by 17.65 percent on-year to Rs 1.45 lakh crore as on June 30 2025.

Ranjan also said that the proportion of corporate to RAM in the reporting quarter was 44:56, with 56 percent is the RAM portfolio and around 44 percent corporate portfolio. Over the years, it has been remaining almost stable at 55:45, he added.

Ranjan said that the bank have sanctions of around Rs 1500-2000 croee to two to three electric vehicle manufacturing.

Further, on the margins front, the bank is expected to see a moderation of around 20-25 basis points (bps) in the current financial year due to rate actions by the RBI leading to repricing of deposits and assets.

In the reporting quarter, the bank have seen a moderation of NIMs by 11 bps on-year and 29 bps on-quarter.

As per investor presentation, NIMs of bank stood at 2.76 percent as on June 30, 2025, down from 2.87 percent as on March 31, 2025, and 3.05 percent as on June 30, 2025.