homefinance NewsCurrent Account Savings Account growth is our focus, expect some costs on deposit side to rise: Union Bank of India's CEO
Current Account Savings Account growth is our focus, expect some costs on deposit side to rise: Union Bank of India's CEO
Union Bank of India Q1 results: The lender reported more than 107 percent year-on-year rise in its standalone net profit to Rs 3,236.44 crore in the first quarter of FY24.
The Current Account Savings Account (CASA) growth is the focus of Union Bank of India, A Manimekhalai, Managing Director and Chief Executive Officer (CEO) of the lender said on Friday. She is expecting some costs on deposit side to increase in the future. Manimekhalai was speaking exclusively to CNBC-TV18 a day after the bank reported more than 107 percent year-on-year rise in its standalone net profit to Rs 3,236.44 crore in the first quarter of FY24.
Commenting further, the MD said that lender is comfortably placed with reference to liquidity in the balance sheet. She is expecting gross non-performing asset (NPA) ratio to go below 6 percent in FY24.
In April-June quarter, Union Bank of India reported an improvement in the asset quality, with gross non-performing asset (NPA) ratio improved by 288 bps and net NPA decreased by 173 bps compared to year ago period. The gross NPA of the bank fell to 7.34 percent as on June 30, as compared to 7.53 percent in the previous quarter, and 10.22 percent in a year ago period.
Similarly, net NPA of the bank decreased to 1.58 percent in April-June quarter, as against 1.70 percent quarter ago. In absolute terms, gross NPA stood at Rs 60,104 crore, down 19.32 percent on-year, and net NPA stood at Rs 12,138 crore, down 45.79 percent.
On cost to income ratio, the lender's CEO said that it was bloated in the fourth quarter of FY23. However, she expects it to come down to 44-45 percent in the future.
Meanwhile, the global and domestic advances of the state-owned lender increased 12.33 percent and 11.77 percent on-year, respectively in June quarter. According to the press release issued by the lender, the global advances stood at Rs 8.19 lakh crore and domestic advances stood at 7.94 lakh crore in April-June. Deposits rose 13.63 percent 0n-year to Rs 11.28 lakh crore.
(Edited by : Anshul)
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