State-run Union Bank of India on Monday posted a 34% jump in net profit to Rs 4.72 billion for the second quarter ended September 2024. The Mumbai-based lender had posted a net profit of Rs 3,511 crore in the quarter. A year ago.
Union Bank of India said in a regulatory filing that total revenue rose to Rs 32,036 crore in the quarter, compared to Rs 28,282 crore in the year-ago period.
The bank reported interest income of Rs 26,708 crore for the quarter compared to Rs 24,587 crore in the year-ago period.
However, net interest income (NII) declined by 0.87% to Rs 9,047 million from Rs 9,126 million in the second quarter last year.
Net interest margin also decreased to 2.9% from 3.18% at the end of the second quarter of the previous fiscal year.
In terms of asset quality, the bank witnessed improvement, with gross non-performing assets (NPAs) decreasing to 4.36% as a percentage of total loans by end-September 2024 from 6.38% a year ago.
Similarly, net NPAs or non-performing loans decreased to 0.98% from 1.30% at the end of the second quarter last year.
The company’s total business increased by 9.37%, of which total advances increased by 9.63% and total deposits increased by 9.17%.
As of September 30, 2024, the bank’s total business value stood at Rs 21,779 million.
The company announced that its equity ratio has increased from 16.69% as of September 30, 2023 to 17.13% by September 30, 2024.
The bank’s return on assets and return on equity for Q2 FY25 were 1.35% and 19.10%, respectively, it added.
