Union Bank of India reports 60% increase in Q3FY24 net profit
Union Bank of India today announced its financial results for the quarter ending December 31, 2023, showcasing a formidable performance. The bank’s net profit witnessed a significant 60% year-on-year increase during Q3FY24, bolstered by a 6.26% growth in net interest income. This surge in profitability is a clear indicator of the bank’s robust financial management and strategic operations.
Enhanced Liability Franchise and Business Growth
The bank continues to strengthen its liability franchise, with CASA deposits increasing by 5.62% year-on-year. The total deposits base reached an impressive ₹11,72,455 Crores as of December 31, 2023. In terms of business growth, Union Bank of India reported a 10.67% increase year-on-year, with Gross Advances rising by 11.44% and Total Deposit growing by 10.09%. The bank’s total business stood at ₹20,68,429 Crores as of the same date.
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Notable Growth in RAM Segments
The Retail, Agri, and MSME (RAM) segment of the bank saw a 13.85% year-on-year increase, with significant growth in retail, agriculture, and MSME advances. This growth is indicative of the bank’s effective targeting and performance in these key segments.
Reduction in NPA and Strong Capital Ratios
Union Bank of India also reported a notable reduction in its Non-Performing Assets (NPA), with Gross NPA (%) reducing by 310 basis points and Net NPA (%) reducing by 106 basis points year-on-year. The bank’s Capital to Risk (Weighted) Assets Ratio (CRAR) improved to 15.03%, and the CET1 ratio improved to 11.71%, reflecting a strong capital base and financial resilience.
Improved Returns and Operational Efficiency
The bank’s Return on Assets and Return on Equity improved to 1.07% and 17.25% respectively during Q3FY24, indicating enhanced operational efficiency and profitability.
Union Bank of India’s performance in Q3FY24 reflects a remarkable financial trajectory, indicating robust health and growth in key areas of its operations. The substantial 60% increase in net profit, coupled with a 6.26% growth in net interest income, suggests a strategic alignment of the bank’s core revenue-generating activities. The 10.67% year-on-year growth in total business, with a notable expansion in the RAM segment, demonstrates the bank’s effective targeting of key growth areas. These financial results, supported by a strong liability franchise and a significant reduction in NPAs, position Union Bank of India as a resilient and growth-oriented institution in the competitive banking sector.