In a notable financial achievement, Union Bank of India, a prominent state-owned lender, has reported a substantial 60 percent rise in standalone net profit for the fiscal third quarter.
The results, aligning closely with Motilal Oswal’s estimate, reflect the bank’s robust performance amid evolving economic conditions.
- Standalone Net Profit: Union Bank of India’s standalone net profit surged to Rs 3,589.91 crore for Q3, marking an impressive 60 percent increase. This outcome is in line with the projections made by Motilal Oswal, standing at Rs 3,558.2 crore.
- Sequential Growth: On a sequential basis, the net profit saw a moderate increase of 2.24 percent compared to the July-September quarter, where the bank reported a net profit of Rs 3,511.42 crore.
- Asset Quality: The bank showcased a commendable improvement in asset quality, with the gross non-performing asset (NPA) declining to 4.83 percent from 6.38 percent in the previous quarter and 7.93 percent in the same period last year.
- Net NPAs: Union Bank of India reported a reduction in net NPAs, standing at 1.08 percent compared to 1.30 percent in the previous quarter and 2.14 percent in Q3FY23.
- Business Growth: The bank’s business witnessed a robust 10.67 percent YoY growth, reaching Rs 20.68 lakh crore in the December quarter. Total advances and deposits experienced noteworthy increases of 11.44 percent (Rs 8.96 lakh crore) and 10.09 percent (Rs 11.72 lakh crore), respectively.
- Market Performance: Union Bank of India’s shares are currently trading at Rs 143.45 on the BSE, reflecting a significant 5.40 percent increase.
Union Bank of India’s Q3 results not only demonstrate a remarkable surge in profitability but also highlight improvements in asset quality and substantial business growth. The bank’s strategic positioning and financial resilience contribute to its positive trajectory in the evolving economic landscape.
Disclaimer: Investors are advised to exercise due diligence and consult financial experts before making investment decisions. The views expressed in this blog are based on available information and do not necessarily represent the opinions of Union Bank of India or financial experts.