Union Bank’s Q4 net rises 93.3% to Rs 2,782 cr on healthy growth in NII

Public sector lender Union Bank of India’s net profit increased by 93.3 per cent YoY to Rs.2,782 crore for the quarter ended March 2023 (Q4FY23) on healthy growth in Net Interest Income (NII) and Non-Interest Income.

Sequentially, the profit increased from Rs 2,244 crore in the third quarter of FY23.

For FY23, the bank’s net profit grew by 61.18 per cent to Rs.8,433 crore as against Rs.5,232 crore in FY22.

The board of directors has recommended a dividend of Rs 3.0 per share (Rs 10 per share) for FY23, subject to shareholder approval, the Mumbai-based lender has informed BSE.

The capital adequacy ratio was 16.04 percent with the ordinary equity level at 12.36 percent at the end of March.

Union Bank National Insurance, interest income less interest expense, grew by 21.9 per cent YoY to Rs.8,251 crore in Q4FY23 vs. Rs.6,769 crore in Q4FY22. Net interest margin improved to Rs.2.98 percent in the fourth quarter of fiscal year 23 from 2.75 percent in the fourth quarter of fiscal year 22.

Non-interest income increased by 62.48 per cent year-on-year to Rs. 5,269 crore in the fourth quarter of FY23, the bank said in a statement.

Advances grew by 13.05 per cent year-on-year to Rs 8.09 trillion in FY23. Out of that, RAM advances – retail, agricultural, small and micro (RAM) – increased at a higher pace of 14.94 per cent to reach Rs 4.36 trillion at the end of March 2023.

Total deposits increased by 8.26% year-on-year to Rs.11.17 trillion. The share of low-cost deposits – current account and savings accounts (CASA) – reached 35.62 percent at the end of March 2023, down slightly from 36.54 percent a year earlier.

The asset quality profile improved with total non-performing assets declining to 7.53 percent in March from 11.11 percent in the same month of 2022. Net NAPs also decreased by 1.7 percent in March 2023 from 3.68 percent a year earlier.