Union Bank of India has posted a 61.18 per cent growth in its net profit to Rs 1,440 crore for the quarter ended March 31, 2023, over the figure of the corresponding period the previous year. In the reviewed quarter, the bank had strong growth in terms of advances and deposits year-on-year, while a sharp decline has been seen in gross non-performing assets (NPA). Interest margins expanded further annually.
According to the statement shared with exchanges, net interest income (NII) — the difference between interest earned and expended — was Rs 8,251 crore which came from 17.92 per cent from NII of Rs 6,769 crore in the year-ago period but down by 4.38 per cent from Rs 8,628 crore in the third quarter of FY23. Net interest margins (NIM) for the reviewed quarter was 2.98 per cent, expanding by 13 bps from 2.75 per cent in the March quarter but down by 23 bps from 3.21 per cent in the third quarter.
In the reviewed quarter, the bank registered 13.05 per cent year-on-year and 0.73 per cent quarter-on-quarter growth in global advances to Rs 8,09,905 crore, while deposits stood at Rs 11,17,716 crore up by 8.26 per cent year-on-year and 4.95 per cent quarter-on-quarter. The bank’s credit in retail, agri, and MSME (RAM) segments increased by 14.94 per cent year-on-year, where 17.19 per cent growth in retail, 14.20 per cent growth in agriculture, and 13.06 per cent growth in MSME advances is achieved on a year-on-year basis. RAM advances as a per cent of domestic advances stood at 55.61 per cent.
