Solid Earnings Surge:
In the third quarter of the fiscal year 2024, Union Bank of India witnessed a remarkable 60.00% surge in its net profit compared to the same period last year. The net interest income of the bank also experienced substantial 6.26% YoY growth during Q3 FY24.
Reinforcing its Financial Foundation:
Building a Strong Liability Franchise:
Union Bank continues to establish itself as a robust financial institution with an impressive 5.62% YoY growth in CASA deposits. As of December 31, 2023, the bank boasts a total deposits base of Rs.11,72,455 Crores.
Focused on Expanding Business Horizons:
Business Expansion in Full Swing:
The overall business of Union Bank saw a commendable 10.67% YoY growth, with Gross Advances increasing by 11.44% YoY and Total Deposits growing by 10.09% YoY. The bank now commands a total business portfolio of Rs.20,68,429 Crores as of December 31, 2023.
Nurturing Growth in Key Segments:
Union Bank experienced significant growth in the Retail, Agri, and MSME (RAM) segments, recording a YoY increase of 13.85%. This growth is further delineated by a 12.60% increase in Retail, 17.88% in Agriculture, and 10.51% in MSME advances. RAM advances now constitute a substantial 56.28% of Domestic Advances.
Tackling Non-Performing Assets:
Strengthening Asset Quality:
Union Bank showcased its commitment to reducing Non-Performing Assets (NPA), with Gross NPA (%) dropping by 310 basis points (bps) YoY to 4.83%. Additionally, Net NPA (%) witnessed a decline of 106 bps YoY, reaching 1.08% as of December 31, 2023.
Fortifying Capital Positions:
Union Bank’s Capital to Risk-weighted Assets Ratio (CRAR) exhibited a positive trajectory, improving from 14.45% on December 31, 2022, to an impressive 15.03% on December 31, 2023. The Common Equity Tier 1 (CET1) ratio also saw a significant boost, reaching 11.71% as of December 31, 2023, compared to 10.71% on December 31, 2022.
Expansive Network and Green Initiatives:
Extensive Reach and Commitment to Sustainability:
Union Bank boasts a robust network comprising 8,479 branches, including foreign branches, and 9,889 ATMs. In addition to its financial prowess, the bank is actively contributing to green initiatives. In the Renewable Energy Sector, Union Bank has sanctioned an impressive Rs. 25,256 crores as of December 31, 2023. Furthermore, Union Green Miles, another green initiative, has received a sanctioned amount of Rs. 398 crores as of the same date.
In summary, Union Bank of India’s third-quarter performance underscores its financial strength, strategic growth, and commitment to sustainability, positioning it as a formidable player in the banking sector.
