Union Bank’s gross advances rose by 2.7% year on year to stand at Rs 6.69 lakh crore.
Union Bank of India on Monday reported a 49% year-on-year rise in net profit to Rs 1,085 crore in the October-December quarter, helped by lower provisions and healthy growth in net interest income (NII). However, the bank’s net income fell 29% on a sequential basis.
Net interest income – the difference between interest earned and interest spent – rose 8.9% year on year to Rs 7,174 crore in the quarter under review. Net interest margin (NIM) also improved to 3% from 2.95% a quarter ago and 2.94% a year ago.
Union Bank’s asset quality improved in the quarter under review, with the lender reporting a gross non-performing asset ratio (GNPA) of 11.62% at end-December, down from 12.64 % at the end of September and 13.49% during the corresponding period. one year ago. Net NPAs, however, rose to 4.09% as of December 31 from 3.27% a year ago. The cost of credit, or the amount set aside for bad debt, stood at 1.40% at the end of December, down from 2.31% the previous quarter and 1.86% a year ago.
Provisions and contingencies amounted to Rs 2,549.6 crore from October to December, significantly lower than Rs 5,210 crore a year ago and Rs 3,723.7 crore a quarter ago. The provision coverage rate at the end of December was 82.80%. The bank’s capital adequacy ratio stood at 13.92% at the end of December, of which 10.18% was Common Equity Tier I capital.
Union Bank’s gross advances rose by 2.7% year on year to stand at Rs 6.69 lakh crore. Of the total advances, personal loans increased by 9.8% year on year to reach Rs 1.32 lakh crore at the end of December, agricultural loans increased by 11.1% to Rs 1.28 lakh crore , while loans to micro, small and medium enterprises increased by 6.4% year on year to Rs 1.11 lakh crore. The bank’s yield on advances increased 8 basis points sequentially to 7.20% from October to December.
On the liability side, the lender’s total deposits increased by 6.2% year on year to Rs 9.37 lakh crore. Among these, low-cost Current Account and Savings Account (CASA) deposit stood at Rs 3.46 lakh crore, up 11.1% year on year. As a percentage, the bank’s CASA ratio stands at 36.99%.