Business · Companies · 1 hr ago
Union Bank of India Q2 profit rises 30% to ₹5,537 crore
Union Bank of India’s September-quarter profit rose 30% from a year earlier to ₹5,537 crore.
The Mumbai-based bank said its net interest income, the money earned from lending after paying deposit costs, increased 20% to ₹10,582 crore.
Provisions nearly halved to ₹701 crore, while net non-performing assets fell to 0.4% from 0.6%.
The bank’s net interest margin, a measure of the gap between loan and deposit rates, improved to 2.9% from 2.7%.
Loans grew 19%, with corporate advances rising 24% to ₹5.2 lakh crore.
Chief executive Asheesh Pandey said the bank aims to raise its margin above 3% by the next fiscal year.
The bank expects margins to improve further after a 25-basis-point increase in the repo rate, and it has a corporate loan pipeline of ₹1 lakh crore.
Union Bank of India’s net profit rose 30% year on year to ₹5,537 crore in the September quarter.
Net interest income increased 20% to ₹10,582 crore, while provisions nearly halved to ₹701 crore.
The bank’s net interest margin improved to 2.9%, from 2.7% a year earlier.
Total advances grew 19% year on year to ₹11.6 lakh crore, led in part by corporate advances.
Chief executive Asheesh Pandey said the bank aims to raise its net interest margin above 3% by the next fiscal year.
- Who
- Union Bank of India.
- What
- It reported a 30% year-on-year rise in quarterly net profit to ₹5,537 crore.
- When
- The September quarter. The bank announced the results on Monday.
- Where
- Mumbai.
- Why
- Higher net interest income and lower provisions supported the profit increase.
This story does not have two clearly opposing sides.
Net profit was ₹4,249 crore, net interest margin was 2.7% and provisions were ₹1,397 crore.
Net profit rose to ₹5,537 crore, net interest margin improved to 2.9% and provisions fell to ₹701 crore.
The bank said net interest income rose 20% to ₹10,582 crore.
Chief executive Asheesh Pandey said the bank aims to improve its net interest margin beyond 3%.
- Net profit
- ₹5,537 crore, up 30% year on year
- Net interest income
- ₹10,582 crore, up 20%
- Provisions
- ₹701 crore, down from ₹1,397 crore a year earlier
- Net interest margin
- 2.9%, compared with 2.7% a year earlier
- Total advances
- ₹11.6 lakh crore, up 19% year on year
- Corporate advances
- ₹5.2 lakh crore, up 24% year on year
What people are saying
We have started building up from when rates were on the way down. Now that the trajectory has changed and the repo rate has been hiked by 25 basis points, we expect to further improve margins