Mumbai: Union Bank of India reported a big 51 per cent rise in net profit for the January-March quarter of FY24. The profit stood at Rs 4,984.9 crore, much higher than the Rs 3,293.4 crore earned in the same quarter last year. This strong performance was mainly due to better other income, which went up to Rs 5,509 crore from Rs 4,707 crore last year.
Net Interest Income Sees Slight Growth
Net Interest Income (NII), the money a bank makes from lending minus what it pays on deposits, showed only a small increase. It came in at Rs 9,514 crore, just 0.8 per cent higher than Rs 9,436.5 crore during the same quarter last year.
Mixed Trends in Asset Quality
The bank's asset quality improved compared to the December quarter. Gross Non-Performing Assets (GNPAs) fell to 3.6 per cent from 3.85 per cent, while Net NPAs rose slightly to 0.82 per cent from 0.63 per cent. However, slippages—or new bad loans—went up to Rs 2,483 crore, compared to Rs 1,820 crore in the previous quarter.
Provisions and Write-Offs Update
Provisions for bad loans increased slightly to Rs 1,675 crore from Rs 1,477 crore in the December quarter. On a positive note, the bank reduced its write-offs sharply, bringing them down to Rs 1,230 crore from Rs 4,059 crore in the earlier quarter.
Dividend Announced
Union Bank’s board has recommended a dividend of Rs 4.75 per share for the financial year 2024-25. This dividend is subject to approvals from regulators and shareholders during the upcoming Annual General Meeting.
Stock Market Reaction
The Q4 results were announced after market hours on Thursday. Before the announcement, Union Bank’s stock ended the day lower at Rs 115.45, down by Rs 3.05 or 2.57 per cent on the BSE.
