Union Bank Of India Q2 Results: Profit Up 34% On Lower Provisions
The public sector bank posted a profit of Rs 4,720 crore in the second quarter.
(File photo of Union Bank of India. Source: Vijay Sartape/NDTV Profit)
Fall in provisions helped Union Bank of India to report a 34% year-on-year rise in standalone net profit in the second quarter of the current financial year.
The public sector bank's bottom line of Rs 4,720 crore also beat the consensus estimate of Rs 3,789 crore by analysts polled by Bloomberg. Sequentially, the profit after tax grew 28%.
Provisions and contingencies fell nearly 9% annually and over 17% sequentially to Rs 3,393 crore, according to an exchange filing on Monday.
Net interest income fell 0.9% annually and 4% sequentially to Rs 9,047 crore. The net interest margin also compressed to 2.9% from 3.05% a quarter ago and 3.18% a year ago.
Loan growth of the bank remained healthy at Rs 8.94 lakh crore, up 9% annually and 2% sequentially. Deposits grew 9% year-on-year and over 1% quarter-on-quarter to Rs 12.4 lakh crore.
Asset quality of the bank showed mixed trends, with the gross non-performing assets ratio falling to 4.36% from 4.54% a quarter ago and 6.38% a year ago. However, the net bad loan ratio was at 0.98% as compared to 0.90% a quarter ago and 1.3% a year ago.
Union Bank Q2 FY25 Earnings Highlights (Standalone)
Net interest income fell 0.9% to Rs 9,047 crore versus 9,126 crore (YoY).
Net profit up 34% at Rs 4,720 crore versus Rs 3,511 crore (YoY).
Gross NPA at 4.36% versus 4.54% QoQ.
Net NPA at 0.98% versus 0.90% QoQ.
