Union Bank of India Q1 Results: Net Profit Jumps 13.68%; NPA At 4.54%

The financial results of Union Bank of India for the quarter ending June 30, 2024, were approved by the board of directors today. According to the bank, its net income climbed from Rs 23,478 Cr in the year-ago quarter to Rs 26,364 Cr in Q1FY25, a 12.29% YoY growth. Interest expenses for the company were Rs 16,952 Cr in the quarter under review, compared to Rs 14,638 CR in the same period the previous year, indicating a YoY increase of 15.81%. Union Bank of India said that, compared to Rs 8,840 Cr in Q1FY24, its net interest income increased by 6.47% YoY to Rs 9,412 Cr in Q1FY25.

The bank's Non-Interest Income stood at Rs 4,509 Cr in the quarter under review up by 15.53% from Rs 3,903 Cr in the year-ago quarter. The bank's net profit for Q1FY25 was Rs 3,679 Cr up by 13.68% YoY from Rs 3,236 Ct in Q1FY24.

Domestic deposits at the bank are up 8.52% year on year. As of June 30, 2024, the bank's total deposit base was Rs. 12,24,191 crores. The bank's overall business rose by 9.76% year on year, with gross advances rising by 11.46% and total deposits rising by 8.52%. As of June 30, 2024, the bank's overall business was valued at Rs. 21,36,405 crores. The bank's RAM Segment grew by 14.53% year over year, with YoY gains of 12.28% in Retail, 23.00% in Agriculture, and 7.21% in MSME advances. RAM advances made for 57.83% of all domestic advances.

According to Union Bank of India, as of June 30, 2024, its Net NPA (%) dropped by 68 bps on a year-over-year basis to 0.90% and its Gross NPA (%) fell by 280 bps to 4.54%. As of June 30, 2024, the CRAR improved to 17.02% from 15.95%. The CET1 ratio increased from 12.34% on June 30, 2023, to 13.81% on June 30, 2024. In Q1FY25, the bank's return on equity and return on assets were 15.70% and 1.06%, respectively.

On Friday, the shares of Union Bank of India closed 0.48% lower at Rs 135.60 apiece.