Union Bank of India (UBI) reported a 108 per cent year-on-year jump in first quarter net profit at Rs 3,236 crore, against Rs 1,558 crore in the year-ago quarter on the back of healthy growth in net interest income and other income, and a decline in loan loss provisions.
Net interest income (difference between interest earned and interest expended) of the Mumbai-headquartered public sector bank was up about 17 per cent yoy at Rs 8,839 crore (Rs 7,582 crore in the year-ago quarter).
Other income, comprising income (including commission) from non-fund based banking activities, fees, earnings from foreign exchange, profit/ loss on sale of assets, profit/ loss (including revaluation) from investments, recovery from accounts written-off, etc, rose 39 per cent to Rs 3,903 crore (Rs 2,817 crore).
Net interest margin increased to 3.13 per cent in the reporting quarter, from 3 per cent in the year-ago quarter.
Loan loss provisions declined 46 per cent yoy to Rs 1,984 crore (Rs 3,653 crore).
The gross non-performing assets (NPA) to gross advances position improved to 7.34 per cent as at June-end 2023, against 7.53 per cent as at March-end 2023.
The net NPA to net advances position improved to 1.58 per cent as at June-end 2023, against 1.70 per cent as at March-end 2023.
Total deposits increased by 13.63 per cent yoy to stand at Rs 11,28,052 crore as on June-end 2023. Low-cost current account, savings account (CASA) deposits declined to 34.60 per cent as at June-end 2023, against 36.20 per cent as at March-end 2023.
Gross advances rose by 12.33 per cent yoy to stand at Rs 8,18,457 crore on the back of about 15 per cent growth in RAM (retail, agriculture and MSME) advances and 9.40 per cent growth in corporate & other advances.