Union Bank of India Announces Robust Financial Results For Quarter Ended June 30, 2023

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.