Union Bank of India reports 90% y-o-y jump in Q2FY24 net profit at ₹3,511 cr
Union Bank of India (UBoI) reported a 90 per cent jump in second-quarter standalone net profit at ₹3,511 crore on healthy growth in net interest income and other income, decline in provisions towards bad loans and write-back in provision in non-performing investments.
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The public sector bank had reported a net profit of ₹ 1,848 crore in the year-ago quarter.
Net interest income (difference between interest earned and interest expended) was up about 10 per cent y-o-y at ₹9,126 crore (₹ 8,305 crore in the year-ago quarter).
Other income, including fee-based income, treasury income and recovery in written-off accounts, rose about 13 per cent y-o-y to ₹3,695 crore (₹3,276 crore).
Net interest margin (interest income – interest expense/ total assets) nudged up to 3.18 per cent from 3.15 per cent a year ago.
GNPAs, NPAs
Gross non-performing assets (GNPAs) position improved to 6.38 per cent of gross advances as of September-end 2023 against 7.34 per cent as of June-end 2023. Net NPAs position also improved to 1.30 per cent of net advances against 1.58 per cent.
Provisions for non-performing assets declined about 40 per cent y-o-y to ₹1,691 crore (₹2,816 crore). Write-back from provision on non-performing investments was at ₹124 crore (₹113 crore).
Gross advances increased by 9.50 per cent y-o-y to ₹8,47,214 crore as of September-end 2023, with domestic and overseas advances growing by 9.17 per cent (to ₹8,21,437 crore) and 21.47 per cent (to ₹25,777 crore), respectively.
Within domestic advances, agriculture advances recorded the highest growth of 15.04 per cent, followed by retail (14.68 per cent), MSME sector (14.03 per cent) and large corporate & others (3.80 per cent)
Total deposits rose by 9.04 per cent y-o-y to stand at ₹11,37,628 crore as at September-end 2023.The share of current account, savings account deposits declined to 34.66 per cent of domestic deposits from 35.64 per cent.