Union Bank first-quarter net profit zooms 108 per cent to Rs 3,236 cr

Union Bank of India (UBI) reported a 108 per cent year-on-year jump in first-quarter net profit at Rs. 3,236 crore, up from Rs. 1,558 crore in the year-ago quarter on the back of healthy growth in net interest and other income, and lower loan loss provisions.

Net interest income (the difference between interest earned and interest disbursed) of the Mumbai-based public sector bank increased by about 17 per cent year-on-year at Rs.8,839 crore (Rs.7,582 crore in the year-ago quarter).

Other income, which includes income (including commission) from non-fund-based banking activities, fees, earnings from foreign exchange, gain/loss on sale of assets, gain/loss (including revaluation) from investments, recoveries from accounts written off, etc., increased by 39% to Rs.3,903 crore (Rs.2,817 crore).

Net interest margin increased to 3.13 percent in the mentioned quarter, from 3 percent in the same quarter last year.

Provisions for loan losses decreased by 46% year-on-year to Rs.1,984 crore (Rs.3,653 crore).

The total non-performing assets (NPA) to total advances position improved to 7.34 percent at the end of June 2023, compared to 7.53 percent at the end of March 2023.

The NPA’s net position to net advances improved to 1.58 percent at the end of June 2023, compared to 1.70 percent at the end of March 2023.

Total deposits increased by 13.63% year-on-year to Rs. 11,28,052 crore as at the end of June 2023. Low-cost current and savings account (CASA) deposits fell to 34.60 per cent at the end of June 2023, from 36.20 per cent at the end of March 2023.

Total advances increased by 12.33% YoY to stand at Rs.8,18,457 crore on the back of around 15% growth in RAM (Retail, Agriculture, Micro, Small and Medium Enterprises) and 9.40% growth in Other Corporate & Advances.