Union Bank Q2 Updates: Total Advances Rises 9.63%

Union Bank of India Ltd.'s total advances rose 9.63% year-on-year to Rs 9.28 lakh crore in the quarter-ended September, according to provisional figures released by the lender on Saturday.

Total deposits rose 9.17% over a year ago to Rs 12.42 lakh crore, according to an exchange filing. The bank's total business as of Sept. 30 rose 9.36% year-on-year at over Rs 21.7 lakh crore.

Domestic advances in the quarter grew 8.88% year-on-year as of Sept. 30., 2024.

Earlier last month, the state-run lender said that operations at some of its branches may get affected on Sept. 27 as a section of employees will proceed with a strike.

In September, the All India Union Bank Officers' Federation and the All India Bank Employees Association, which represent a majority of the bank's workers, had called a strike on Sept. 27 to "oppose unilateralism of bank management.".

Both the unions have decided to withdraw their strike call, Union Bank said in an exchange filing. However, a joint forum of some other employee unions—AIUBEF, AIUBSF, UBSA and UBIEU—has decided to go ahead with the strike, it said.

The state-owned Union Bank of India reported a 13.7% growth in net profit to Rs 3,679 crore for the June 2024 quarter and flagged challenges on the net interest margin front. The bank's core net interest income grew 6.5% to Rs 9,412 crore on the back of an 11.5% growth in advances.

Net interest margin narrowed by over 0.13% to 3.05%. The other income increased 15.53% to Rs 4,509 crore on healthy growth in the core fee income.

The net interest income and other income were down when compared to the March quarter. On the NIMs front, the number is higher than the guidance of 2.8-3%.

Shares of Union Bank closed 0.03% higher at Rs 119.01 apiece, compared to a 0.93% decline in the benchmark Nifty 50 on Friday.

Out of 11 analysts tracking the company, nine have a 'buy' rating on the stock, one suggests a 'hold', and one recommends a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 31.1%.