Union Bank Q1 results: Net profit up 13.7% on healthy growth in fee income


State-run lender Union Bank of India reported a 13.68 per cent year-on-year increase in its net profit to Rs 3679 crore for the April-June quarter, aided by double-digit loan growth which helped fee income growth.


Net interest income grew by 6.47 per cent year-on-year to Rs 9412 crore, while non-interest income grew by 15.53 per cent to Rs 4509 crore. Fee income grew by 36.46 per cent to Rs 2868 crore, though treasury income fell by 9.68 per cent to Rs 700 crore.


Net interest margin fell 8 basis points (bps) year-on-year to 3.05 per cent.


Gross advances increased by 11.46 per cent year-on-year and total deposits grew by 8.52 per cent year-on-year. The total business as of June 30 was Rs 21.36 trillion.


Retail, agriculture, and MSME (RAM) segment loan growth was 14.54 per cent, of which retail advances grew by 12.28 per cent.


The bank’s current and savings account (CASA) deposit growth was 3.74 per cent, and retail term deposit growth was 5.92 per cent. The CASA ratio fell to 33.40 per cent, down 120 bps from 34.60 per cent in Q1 of FY24.


The Gross NPA ratio was reduced by 280 bps on a year-on-year basis to 4.54 per cent, and Net NPA by 68 bps on a year-on-year basis to 0.90 per cent as of the end of June. The bank saw a slight increase in provisions, 4.13 per cent, to Rs 4106 crore.


While NPA provision fell to Rs 1651 crore from Rs 1984 crore, standard asset provisioning increased to Rs 1296 crore from Rs 56 crore in the year-ago period. The provision coverage ratio was 93.49 per cent at the end of June compared to 92.69 per cent in March.


The capital adequacy ratio improved from 15.95 per cent to 17.02 per cent, while the Common Equity Tier 1 (CET1) ratio increased to 13.81 per cent from 12.34 per cent in the year-ago period.

First Published: Jul 19 2024 | 9:36 PM IST