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.
- Also read: RBI imposes ₹1 crore penalty on Union Bank
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.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.