State-run lender Union Bank of India on Thursday reported a 107.67 percent year-on-year (YoY) jump in net profit at Rs 3,236.4 crore for the first quarter that ended June 30, 2023.
In the corresponding quarter last year, the Union Bank of India posted a net profit of Rs 1,558.5 crore, the bank said in a regulatory filing.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased 16.6 percent, coming at Rs 8,839.7 crore against Rs 7,581.7 crore in the corresponding quarter of FY23.
The gross non-performing assets (GNPA) stood at 7.34 percent in the June quarter against 7.53 percent in the March quarter. Net NPA came at 1.58 percent against 1.70 percent quarter-on-quarter.
The CASA deposits have increased by 7.17 percent year-on-year. The bank now has a total deposit base of Rs 11,28,052 crore as on June 30, 2023. Total business of the bank increased by 13.08 percent year-on-year, wherein gross advances increased by 12.33 percent year-on-year & total deposits grew by 13.63 year-on-year.
The bank has a total business of Rs 19,46,509 crore as on June 30, 2023. Credit in retail, agri, and MSME (RAM) segments of the bank increased by 14.92 percent year-on-year, where 16.47 percent growth in retail, 13.37 percent growth in agriculture, and 14.88 percent growth in MSME advances is achieved on a year-on-year basis. RAM advances as a percent of domestic advances stood at 55.92 percent.
Capital to Risk (Weighted) Assets Ratio (CRAR) improved from 14.42 percent on June 30, 2022, to 15.95 percent on June 30, 2023. The common Equity Tier 1 (CET1) ratio improved to 12.34 percent as on June 30, 2022, from 10.68 percent as on June 30, 2023.
Due to the reduction in cost-to-income and credit-cost ratios, the bank's return on assets & return on equity improved to 1 percent and 18.97 percent respectively.
The results came after the close of the market hours. Shares of Union Bank of India ended at Rs 86.95, up by Rs 1.95, or 2.29 percent on the BSE.
