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Union Bank of India’s net profit rose by 21.07 per cent year-on-year (YoY) to Rs 1,848 crore in the quarter that ended in September (Q2FY23) on the back of an improvement in its net interest margin (NIM).
The public sector lender posted a net profit of Rs 1,526 crore in (Q2FY22).
The bank’s stock was trading 1.0 per cent higher at Rs 47.25 per share on BSE on Thursday.
Union Bank’s net interest income (NII) was up 21.61 per cent YoY in Q2FY23 to Rs 8,305 crore. According to the bank’s filing with BSE, its net interest margin (NIM) improved to 3.15 per cent in Q2FY23 from 2.95 per cent in Q2FY22.
The lender’s non-interest income dipped 17.65 per cent YoY to Rs 3,276 crore during the quarter under review.
Its asset quality profile improved with gross non-performing assets (GNPAs) at 8.45 per cent till September 2022, compared with 12.64 per cent a year ago. Net NPAs dipped to 2.64 per cent from 4.61 per cent.
The provision coverage ratio rose to 86.61 per cent for the quarter under review from 81.77 per cent a year ago.
The bank’s loan book grew 21.92 per cent YoY, at a much higher rate than the banking system’s pace of loan book expansion (16.4 cent YoY) in September 2022. Outstanding advances stood at Rs 7.73 trillion as of September 2022.
The deposits grew by 14.14 per cent YoY to Rs 10.43 trillion in September 2022. This was higher than the banking sector deposit growth of 9.2 per cent.
The bank’s total capital adequacy ratio (CAR) stood at 14.5 per cent in September 2022, up from 13.64 per cent a year ago.
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