Union Bank reported a significant surge in its net profit for the third quarter of the fiscal year 2024, which increased by 90% to Rs 3,511 crore from Rs 1,848 crore in the previous fiscal year. The bank's net interest income also showed an uptrend, marking a 10% increase and reaching Rs 9,126 crore compared to Rs 8,305 crore in the preceding fiscal year.
The bank has shown considerable progress in terms of asset quality. The gross Non-Performing Assets (NPA) fell to 6.38% from the previous 8.45%, while net NPA decreased to 1.30% from the earlier 2.64%.
In addition to improved asset quality, Union Bank also experienced growth in its Current Account Savings Account (CASA) deposits, which swelled by 4.45% year over year to Rs 11.37 lakh crores. The bank's advances climbed by 9.5% to Rs 8.47 lakh crores. This growth was primarily driven by a robust expansion in retail, agriculture, and Micro, Small & Medium Enterprises (MSME) segments, which collectively increased by 14.62%.
The bank's capital adequacy has also improved over time with the Capital to Risk-Weighted Assets Ratio (CRAR) rising to 16.69%, and the Common Equity Tier 1 (CET1) ratio escalating to 13.05%.
Reflecting these positive developments, Union Bank's shares ended Friday on a high note, closing at Rs 99.95 on the Bombay Stock Exchange (BSE), up by 5.49%.
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