State-owned Union Bank of India on Friday (October 27) reported a 90% year-on-year (YoY) jump in net profit at ₹3,511.4 crore for the second quarter that ended September 30, 2023. In the corresponding quarter last year, Union Bank of India posted a net profit of ₹1,848 crore, the company said in a regulatory filing to the exchanges.
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, rose 10%, coming at ₹9,126.1 crore against ₹8,305 crore in the corresponding quarter of FY23.
The gross non-performing asset (GNPA) stood at 6.38% in the September quarter against 7.34% in the June quarter. Net NPA came at 1.30% against 1.58% quarter-on-quarter.
In monetary terms, gross NPA stood at ₹54,012.3 against ₹60,103.7 crore quarter-on-quarter, whereas net NPA came at ₹10,421 crore against ₹12,137.9 crore quarter-on-quarter. Provisions stood at ₹1,767.9 crore against ₹2,005 crore quarter-on-quarter and ₹4,076.8 crore year-on-year, the bank said.
The CASA deposits have increased by 4.45% year-on-year. The bank now has a total deposit base of ₹11,37,628 crore as of September 30, 2023. The total business of the bank increased by 9.24% year-on-year, wherein gross advances increased by 9.50% year-on-year, and total deposits grew by 9.04% year-on-year.
The bank has a total business of ₹19,84,842 crore as of September 30, 2023. The credit in retail, agri, and MSME (RAM) segments of the bank increased by 14.62% year-on-year, where 14.68% growth in retail, 15.04% growth in agriculture, and 14.03% growth in MSME advances are achieved on a year-on-year basis.
The capital risk-weighted ratio (CRAR) improved from 14.50% as of September 30, 2022, to 16.69% as of September 30, 2023. CET1 ratio improved to 13.05% as of September 30, 2023, from 10.67% as of September 30, 2022. The bank's return on assets and return on equity improved to 1.07% and 17.97% respectively during Q2 of FY24.
The results came after the close of the market hours. Shares of Union Bank of India ended at ₹99.95, up by ₹5.20, or 5.49 percent on the BSE.
First Published: Oct 27, 2023 11:39 PM IST
