Union Bank of India Q3 Net profit jumps 28%

On Monday, January 27, the state-owned Union Bank of India said that its net profit for the third quarter, which ended on December 31, 2024, increased 28.2% year over year (YoY) to Rs.4,603.6 crore.

 According to a regulatory filing, Union Bank of India reported a net profit of Rs.3,589.9 crore for the same quarter of the previous fiscal year. The difference between a bank's interest revenue from lending and the interest it pays depositors is known as net interest income (NII), and it rose by 0.8% to Rs.9,240.2 crore from Rs.9,168 crore in the same quarter of FY24.

In the December quarter, the gross non-performing asset (GNPA) was 3.85%, compared to 4.36% in the September quarter. Net NPA was 0.82%, down from 0.98% in the previous quarter. Monetary-wise, net non-performing assets (NPA) were Rs.7,568.4 crore compared to Rs.8,758.6 crore, while gross NPA was Rs.36,554.3 crore compared to Rs.40,498.9 crore. 

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Provisions were Rs.1,599.1 crore as opposed to Rs.1,712.2 crore for the quarter and Rs.1,747.8 crore for the quarter. As of December 31, 2024, Union Bank of India's global deposits have increased by 3.76% year over year to Rs.12,16,562 crore. With gross advances rising 5.94% year over year, the bank's whole business rose by 4.70%, contributing to a total business size of Rs.21,65,726 crore.

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.