Mumbai 28 th January 2025 (TGN) :Public sector lender Union Bank of India’s (Union Bank) net profit rose by 28.24 per cent year-on-year (Y-o-Y) to Rs 4,604 crore during the third quarter ended (Q3FY25), driven by healthy growth in non-interest income.
Sequentially, the Mumbai-based lender’s net profit declined by 2.46 per cent from Rs 4,720 crore in the September quarter of 2024. Its stock closed 1.5 per cent lower at Rs 105.65 per share on BSE ahead of the results, which were announced post-market hours.
The bank, in a late-night statement, said its net interest income (NII) grew marginally by 0.79 per cent Y-o-Y to Rs 9,240 crore in Q3FY25, compared to Rs 9,168 crore in the same quarter of the previous year. Its net interest margin (NIM) moderated to 2.91 per cent in Q3FY25, down from 3.08 per cent in Q3FY24.
Non-interest income, including fees, commissions, treasury revenues, and recoveries, rose by 17.02 per cent Y-o-Y to Rs 4,417 crore.
Union Bank of India, MD and CEO A Manimekhalai, said to our reporter Babita Prabhakar, The lender’s provisions for non-performing assets (NPAs) increased to Rs 1,477.3 crore in Q3FY25, compared to Rs 1,226.3 crore in Q3FY24. The asset quality profile improved, with gross NPAs declining to 3.85 per cent in December 2024 from 4.83 per cent in December 2023. Net NPAs also declined to 0.82 per cent in December 2024, compared to 1.08 per cent in December 2023.
The gross non-performing asset (GNPA) stood at 3.85% in the December quarter against 4.36% in the September quarter. Net NPA came at 0.82% against 0.98% quarter-on-quarter.
The provision coverage ratio (PCR), including written-off accounts, stood at 93.42 per cent in December 2024, compared to 92.54 per cent a year ago.
Union Bank’s advances grew by 5.94 per cent Y-o-Y to Rs 9.5 trillion in Q3FY25. Retail advances grew by 16.36 per cent Y-o-Y to Rs 2.01 trillion in December 2024.
Total deposits increased by 3.76 per cent Y-o-Y to Rs 12.16 trillion. The share of low-cost deposits—current account and savings account (CASA)—declined to 33.43 per cent in December 2024 from 34.40 per cent a year ago.
The RAM (Retail, Agriculture, and MSME) segment witnessed a robust 9.26% year-on-year growth, driven by a 16.36% rise in retail advances, a 4.34% increase in agriculture loans, and a 6.34% uptick in MSME advances. RAM advances now constitute 56.69% of the bank’s domestic advances.
The bank’s capital adequacy stood at 16.72 per cent, with Common Equity Tier-1 (CET-1) at 13.59 per cent at the end of December 2024.
