Union Bank of India reports 90% YoY net profit increase in Q2FY24
Union Bank of India’s financial results for the quarter ended September 30, 2023, illustrate a robust performance. The Board of Directors announced a staggering 90% year-on-year (YoY) increase in net profit for Q2FY24. This period also witnessed a notable rise in net interest income, growing by 9.89% on a YoY basis.
Key Growth Metrics and Financial Highlights
The bank’s continued strength in its Liability franchise is evident, with CASA deposits increasing by 4.45% YoY. An impressive total deposits base of Rs. 11,37,628 Crores as of September 30, 2023, underscores the bank’s solid footing in the market. Further emphasizing this trend, the total business of the bank grew by 9.24% YoY, with Gross Advances climbing by 9.50% YoY and Total Deposits by 9.04% YoY. As of the same date, the bank’s total business stood at Rs. 19,84,842 Crores.
Union Bank of India Q2FY24 Financials Showcase Strong Growth Across Key Sectors. Photo courtesy of harat Bang/Wikimedia Commons.
Advancements in Retail, Agriculture, and MSME Segments
The Retail, Agriculture, and MSME (RAM) segments of the bank experienced significant growth. The RAM Segment escalated by 14.62% YoY, marked by increases in Retail (14.68%), Agriculture (15.04%), and MSME advances (14.03%). RAM advances accounted for 56.92% of Domestic Advances.
NPA Reduction and Capital Ratios
Union Bank’s financial health further reflected in the reduction of Non-Performing Assets (NPA). The Gross NPA percentage diminished by 207 basis points YoY to 6.38%, while the Net NPA percentage was down by 134 basis points YoY to 1.30% as of September 30, 2023. The bank’s capital adequacy, as seen in the improved CRAR (from 14.50% to 16.69%) and CET1 ratio (from 10.67% to 13.05%), indicates a fortified financial position.
Profit and Operating Performance
In terms of overall profitability, the bank’s Return on Assets and Return on Equity improved to 1.07% and 17.97%, respectively, during Q2FY24. The detailed financial figures, such as Interest Income, Net Interest Income, and Profit After Tax, exhibit considerable YoY and quarter-on-quarter (QoQ) growth, reinforcing the bank’s upward trajectory in the Indian banking sector.
Union Bank of India’s performance in Q2FY24 sets a positive tone for its future, reflecting resilience and strategic growth across its operations. The bank’s focus on diversifying and strengthening its core sectors positions it as a formidable entity in India’s dynamic banking landscape.