Union Bank of India shares gain after Q1 net profit jump over 13% to ₹3,679 crore

In its quarterly earnings report filed with stock exchanges on July 19, Union Bank of India reported a 13.68% year-on-year rise in net profit at ₹3,678.9 crore for Q1FY25. In the same quarter the previous year, the bank had posted a net profit of ₹3,236.4 crore, according to the regulatory filing. The bank said that the rise in net profit was driven by strong loan growth.

The bank’s net interest income increased 6.5% YoY to ₹9,412.1 crore, compared to ₹8,839.7 crore in the same period in the preceding financial year. Net interest income reflects the difference between the income earned from loans and the interest paid to depositors.

The lender’s gross non-performing assets (GNPA) ratio decreased to 4.54% in the June 2024 quarter, down from 4.76% in the March 2024 quarter. Net NPA (NNPA) ratio also saw a decline, dropping to 0.9% from 1.03% quarter-on-quarter.

Union Bank of India’s domestic deposits grew by 8.52% year-on-year, bringing the total deposit base to ₹12,24,191 crore as of June 30, 2024.

The bank’s total business saw a year-on-year increase of 9.76%, with gross advances rising by 11.46% and total deposits growing by 8.52%. As of June 30, 2024, the bank's total business stood at ₹21,36,405 crore.

Union Bank of India informed the stock exchanges that its retail loans grew 12.28%, agricultural loans 23% and MSME advances 7.21% in Q1FY25. Its RAM (retail, agriculture and MSME) advances accounted for 57.83% of the bank’s domestic advances.

Union Bank shares closed 0.2% higher at ₹135.9 apiece on the NSE.