Union Bank of India reports promising growth in Q1FY24 financials
Union Bank of India’s Board of Directors has released the financial report for the quarter ending June 30, 2023, which shows promising growth across all key sectors. The bank’s net profit saw an impressive increase of 107.67% year-over-year (YoY), while the net interest income also rose by 16.59% on a YoY basis.
Union Bank of India’s CASA deposits exhibited an upward trend, growing by 7.17% YoY, leading to a total deposit base of Rs.11,28,052 crores. This growth reflects the bank’s robust liability franchise and its success in retaining customer deposits.
The total business of the bank experienced a 13.08% YoY increase. This includes a 12.33% YoY increase in gross advances and a 13.63% YoY growth in total deposits, resulting in total business figures of Rs.19,46,509 crores.
Union Bank of India sees significant YoY increase in Q1FY24. Photo courtesy of Deepak das/Wikimedia Commons.
Retail, Agriculture, and MSME (RAM) sectors also experienced substantial growth. The RAM segment saw an overall 14.92% YoY increase, with 16.47% growth in Retail, 13.37% in Agriculture, and 14.88% in MSME advances. The RAM advances now represent 55.92% of domestic advances.
Union Bank made considerable strides in reducing its non-performing assets (NPA). Gross NPA reduced by 288 basis points (bps) YoY to 7.34%, and the net NPA reduced by 173 bps YoY to 1.58%.
The bank has also managed to strengthen its capital ratios. CRAR improved from 14.42% as of June 30, 2022, to 15.95% as of June 30, 2023. The CET1 ratio also improved, reaching 12.34% from 10.68%.
By reducing cost to income and credit cost ratios, the bank has also improved its cost efficiency and return. The bank’s network includes 8,561 branches, including foreign branches, and 10,195 ATMs.