Comments
Union Bank of India (UBI) reported a 60 per cent year-on-year (yoy) jump in third-quarter net profit at Rs 3,590 crore on the back of moderate growth in net interest income, robust growth in other income, and a sharp decline in provision towards bad loans and non-performing investments.
The bank reported a net profit of ₹2,245 crore in the year ago quarter.
Net interest income (difference between interest earned and interest expended) was up about 6 per cent YoY at ₹9,168 crore (₹8,628 crore in the year-ago quarter).
Non-interest income, including fee-based income, treasury income and recovery in written-off accounts, rose about 15 per cent YoY to ₹3,774 crore (₹3,271 crore).
Net interest margin (interest income - interest expense/ total assets) declined to 3.08 per cent from 3.21 per cent a year ago.
Gross non-performing assets (GNPAs) position substantially improved to 4.83 per cent of gross advances at December-end 2023 against 7.93 per cent at December-end 2022.
The bank saw a huge reduction in NPAs amounting to Rs 13,431 crore (including recovery in written-off accounts: ₹9,318 crore, cash recovery: ₹2,725 crore and upgradation: ₹1,388 crore) against ₹4,188 crore in the year-ago quarter.
Net NPAs position too improved to 1.08 per cent of net advances against 2.14 per cent.
Provision towards NPAs and non-performing investments declined sharply to ₹1,226 crore (₹2,443 crore in the year ago period) and ₹94 crore (₹861 crore), respectively. Provisions towards standard assets, however, rose to ₹414 crore (against a writeback of ₹290 crore).
Gross advances increased by 11.44 per cent yoy to ₹8,95,974 crore as at December-end 2023, with domestic and overseas advances growing by 10.69 per cent (to ₹8,66,689 crore) and 39.41 per cent (to ₹29,285 crore), respectively.
Within domestic advances, agriculture advances reported the highest growth of 17.88 per cent; followed by retail (12.60 per cent), MSME (10.51 per cent) and large corporate & others (8.68 per cent).
Total deposits were up by 10.09 per cent YoY at ₹11,72,455 crore as at December-end 2023. The share of current account, savings account deposits declined to 34.40 per cent of total deposits from 35.35 per cent.
UBI’s shares closed at ₹141.65 apiece on BSE, up 4.08 per cent over the previous close.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.