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Union Bank of India Q3FY24 net profit jumps 60% YoY to Rs 3,589; NII stands at Rs 9,168 cr
Photo courtesy: Union Bank of India

Union Bank of India Q3FY24 net profit jumps 60% YoY to Rs 3,589; NII stands at Rs 9,168 cr

India Blooms News Service | @indiablooms | 21 Jan 2024, 05:58 pm

Mumbai: The state-run Union Bank of India Saturday declared a 60 percent increase in its standalone net profit, reaching Rs 3,589.91 crore for the third fiscal quarter.

On a sequential basis, the bank's net profit experienced a modest 2.24 percent growth, with a reported net profit of Rs 3,511.42 crore in the July-September quarter.

The growth came on the back of improved asset quality and a rise in net interest income.

The bank said its gross non-performing asset (NPA) stood at 4.83 percent, down from 6.38 percent in the September quarter and 7.93 percent in the same period last year.

The bank's net NPAs also saw a decline to 1.08 percent, compared to 1.30 percent in the previous quarter and 2.14 percent in the third quarter of the fiscal year 2022-23.

In terms of absolute figures, the bank's gross NPA for the October-December quarter was Rs 43,261.88 crore, a decrease from Rs 54,012.76 crore in the preceding quarter and Rs 63,770.16 crore in the corresponding quarter of the previous year.

The net NPA reduced to Rs 9,351.23 crore in the current reporting quarter, down from Rs 10,471.01 crore in the previous quarter and Rs 16,195.11 crore in the same quarter last year.

In the reported quarter, the net interest income (NII) of the bank saw a modest 6.26 percent year-on-year increase, reaching Rs 9,168 crore. This was a slight uptick from the NII of Rs 9,126 crore in the July-September quarter.

The non-interest income of the bank recorded a notable 15.29 percent year-on-year growth, amounting to Rs 3,774 crore. On a sequential basis, the net non-interest income also saw a 2.14 percent increase.

For the October-December quarter, the net interest margins (NIM) of the bank stood at 3.08 percent, 13 basis points (Bps) decline on a yearly basis and a 10 bps decrease on a quarterly basis. One basis point is equivalent to one-hundredth of a percentage point.

The bank's total advances registered an 11.44 percent year-on-year increase, reaching Rs 8.96 lakh crore, while deposits showed a notable 10.09 percent jump to Rs 11.72 lakh crore during Q3FY24.

The Retail, Agri, and MSME (RAM) segments of the bank collectively grew by 13.85 percent year-on-year, with a 12.60 percent growth in Retail, 17.88 percent growth in Agriculture, and 10.51 percent growth in MSME advances achieved annually. RAM advances, as a percentage of Domestic Advances, accounted for 56.28 percent.

In the reporting quarter, Union Bank of India reduced its investment in non-SLR securities, commercial papers, certificates of deposits, mutual funds, bonds, and debentures.

However, there was an increase in SLR securities, shares, and other investments in the third quarter of the current financial year.

Non-SLR investments decreased to Rs 75,439 crore in December 2023, compared to Rs 88,150 crore in December 2022.

Similarly, investments in bonds and debentures reduced to Rs 59,947 crore in December 2023, down from Rs 69,122 crore in December 2022.

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