The Board of Directors of Union Bank of India approved the accounts of the Bank for the Quarter ended June 30, 2023.
Key Highlights in Q1FY24
1. Strong Financial Performance:
Net Profit of the Bank increased by 107.67% on YoY basis during Q1FY24. Net interest income of Bank grew by 16.59% on YoY basis during Q1FY24.
2. Bank continues to demonstrate a strong Liability franchise:
The CASA deposits have increased by 7.17% YoY. Bank now have a total deposits base of Rs.11,28,052 Crores as on June 30, 2023.
3. Business Growth gaining momentum:
Total Business of the Bank increased by 13.08 % YoY, wherein Gross Advances increased by 12.33 % YoY & Total Deposit grew by 13.63% YoY. Bank have a total Business of Rs.19,46,509 Crores as on June 30, 2023.
4. Credit in Retail, Agri and MSME (RAM) segments:
RAM Segment of the bank increased by 14.92 % YoY, where 16.47 % growth in Retail, 13.37% growth in Agriculture and 14.88 % growth in MSME advances is achieved on YoY basis. RAM advances as a per cent of Domestic Advances stood at 55.92%.
5. Reduction in NPA:
Gross NPA (%) reduced by 288 bps on YoY basis to 7.34% and Net NPA (%) reduced by 173 bps on YoY basis to 1.58% as on 30.06.2023.
6. Strong capital ratios:
CRAR improved from 14.42 % as on 30.06.2022 to 15.95 % as on 30.06.2023. CET1 ratio improved to 12.34 % as on 30.06.2023 from 10.68% as on 30.06.2022.
7. Cost efficiency and improved return:
Due to reduction in Cost to Income & Credit Cost ratios, Bank’s Return on Assets & Return on Equity improved to 1% and 18.97% respectively.