State-run Union Bank of India on Monday posted a 34 percent growth in its net profit of Rs 4,720 crore for the second quarter ended September 2024. The Mumbai-based lender posted a net profit of Rs 3,511 crore in the same quarter. last year.
Net income rose to Rs 32,036 crore in the quarter under review against Rs 28,282 crore in the same period last year, Union Bank of India said in a regulatory filing.
The bank reported interest income of Rs 26,708 crore for the quarter compared to Rs 24,587 crore in the previous period.
However, net interest income (NII) declined by 0.87 percent to Rs 9,047 crore from Rs 9,126 crore in the second quarter of last year.
Net profit margin fell sharply to 2.9 percent from 3.18 percent at the end of the second quarter of the previous fiscal year.
In terms of asset quality, the bank saw improvement as gross non-performing assets (NPAs) decreased to 4.36 percent of total loans at the end of September 2024 from 6.38 percent last year.
Similarly, gross NPAs or bad loans declined to 0.98 percent from 1.30 percent at the end of the second quarter of the previous fiscal.
Its overall business increased by 9.37 percent, where total advances increased by 9.63 percent and total deposits increased by 9.17 percent.
The bank’s total business stood at Rs 21,70,779 crores as on September 30, 2024.
The liquidity ratio increased from 16.69 percent as of September 30, 2023, to 17.13 percent as of September 30, 2024, it said.
The bank’s return on assets and return on equity stood at 1.35 percent and 19.10 percent, respectively, during Q2 FY25, it added.
