Union Bank Q2 profit jumps 34 pc, exceeds Rs 4,700 crore

Delhi: State-run Union Bank of India saw its net profit increase by 34 percent to Rs 4,720 crore in the second quarter ending September 2024. The lender based in Mumbai made a net profit of Rs 3,511 crore in the corresponding quarter last year. Union Bank of India reported that the total revenue grew to Rs 32,036 crore in the quarter being evaluated, compared to Rs 28,282 crore in the previous year's corresponding period. During the quarter, the bank's interest income was Rs 26,708 crore, which is higher than the Rs 24,587 crore reported in the same period in 2023.

Bank Q2 FY25 Results: NII Declines 0.87 pc 

Amid improved asset quality, gross NPAs dropped to 4.36 pc and ROE reached to 19.10 pc. There was a 0.87 per cent decrease in net interest income (NII) from Rs 9,126 crore to Rs 9,047 crore compared to the previous year's second quarter. The net interest margin decreased to 2.9 per cent from 3.18 per cent by the conclusion of the second quarter of the previous fiscal year. Regarding the quality of assets, the bank saw a positive change as gross non-performing assets (NPAs) decreased to 4.36 pc of gross loans by September 2024, down from 6.38 pc  a year earlier.

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Likewise, the percentage of net NPAs or bad loans decreased from 1.30 percent to 0.98 percent by the end of the previous fiscal year's second quarter. The overall Business rose by 9.37 pc, with gross advances up by 9.63 pc and total deposits up by 9.17 pc. As of September 30, 2024, the bank's overall business amounted to Rs 21,70,779 crores. It was reported that the capital adequacy ratio rose from 16.69 percent on September 30, 2023, to 17.13 percent by September 30, 2024. During Q2 FY25, the bank reported a return on assets of 1.35 pc  and a return on equity of 19.10 pc.

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