Union Bank of India, a public sector lender, on Friday reported an 8.3% annual growth in net profit of Rs 1,440 crore on the back of strong growth in net interest income (NII).
Lender’s NII – the difference between interest earned and interest spent – stood at Rs 6,769 crore, up 25% year-on-year. Net interest margin (NIM) fell by 25 basis points (bps) to 2.75% in phases. Operating profit rose 11% YoY to Rs 5,520 crore.
At the end of March 2022, total growth increased by 9.6% to Rs 7.16 trillion, with gold debt, which grew by more than 18%, being a major driver. Lender’s Current and Savings Account (CASA) ratio rose to 36.54% in the quarter under review from 36.33% in the same quarter last year. Its total deposits increased by 11.75% to Rs 10.32 trillion.
Provision has been reduced by 2% YoY to Rs 3,618 crore. The bank has shown an improvement in terms of asset quality. Gross non-performing assets (NPAs) decreased by 51 bps to 11.11% and net NPA ratio decreased by 41 bps to 3.68% as a percentage of total progress.
The value of slips stood at Rs 5,672 crore in the March quarter, up from Rs 3,411 crore in the last quarter of December. Recoveries have increased from Rs 1,343 crore to Rs 1,896 crore in 4 Q3
Shares of Union Bank closed at Rs 36.2 on the BSE on Friday, up 7.42% from the previous close.