Union Bank of India Q2 results: Net profit jumps 90% to Rs 3,511 crore

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Union Bank of India’s net profit for the quarter ended September (Q2FY24) grew by 90 per cent year-on-year (Y-o-Y) to Rs 3,511 crore, aided by over a 12 per cent rise in other income and a dip in provisions for bad loans. Sequentially, the public-sector lender’s profit went up 8.5 per cent from Rs 3,236 crore in the quarter ended June (Q1FY24).


Its stock closed 5.5 per cent higher at Rs 99.95 a share on BSE. The bank announced results after the close of trading hours.


Its Capital adequacy ratio (Car) stood at 16.69 per cent, with Tier-I at 14.57 per cent at the end of September.


Mumbai-based public sector lender’s net interest income (NII) expanded 9.89 per cent to Rs 9,126 crore in Q2FY24, compared to Rs 8,305 crore in the same quarter a year ago. Sequentially, NII rose by 3.24 per cent from Rs 8,840 crore in Q1 of financial year 24 (FY24).


The bank’s net interest margin (Nim) expanded to 3.18 per cent in Q2FY24, compared to 3.15 per cent in Q2FY23. Sequentially, Nim rose from 3.13 per cent in Q1FY24, the bank said in a statement.


Non-interest income comprising fees, commissions, treasury income and recoveries increased by 12.8 per cent Y-o-Y to Rs 3,695 crore. Sequentially, it declined marginally from Rs 3,903 crore in Q1FY24.


Union Bank of India’s provisions for non-performing assets (NPAs) declined to Rs 1,691 crore in Q2, from Rs 2,815 crore in the year-ago period. Sequentially as well, provisions declined from Rs 1,984 crore in Q1FY24.


Advances grew 9.5 per cent Y-o-Y to Rs 8.47 trillion in Q2FY24. The Retail, Agriculture and MSME Credit (RAM) grew by 14.62 per cent to Rs 4.67 trillion, the bank said in a statement.


Total deposits increased 9.04 per cent Y-o-Y to Rs 11.37 trillion. The share of low-cost deposits — current account and saving account (Casa) — was 34.66 per cent at the end of September 2023, down from 35.64 per cent a year ago.