Public sector lender Union Bank of India's net profit rose by 93.3 per cent year-on-year (YoY) to Rs 2,782 crore for the quarter ended March 2023 (Q4FY23) on healthy growth in Net Interest Income (NII) and non-interest income.
Sequentially, the profit rose from Rs 2,244 crore in Q3FY23.
For FY23, the bank's net profit grew 61.18 per cent to Rs 8,433 crore against Rs 5,232 crore in FY22.
The board of directors has recommended a dividend of Rs 3.0 per share (Rs 10 each) for FY23, subject to shareholders' approval, the Mumbai-based lender informed BSE.
Its capital adequacy ratio stood at 16.04 per cent with Common Equity Tier of 12.36 per cent at the end of March.
Union Bank’s NII, interest revenues minus interest expenses, grew by 21.9 per cent YoY to Rs 8,251 crore in Q4FY23 as against Rs 6,769 crore for Q4FY22. The net interest margin improved to 2.98 per cent in Q4FY23 from 2.75 per cent in Q4FY22.
The non-interest income rose by 62.48 per cent YoY to Rs 5,269 crore in Q4FY23, the bank said a statement.
Its advances grew by 13.05 per cent YoY basis to Rs 8.09 trillion in FY23. Out of it, RAM advances – Retail, Agriculture and MSME (RAM)- increased at a higher pace of 14.94 per cent to Rs 4.36 trillion at the end of March 2023.
Total deposits increased by 8.26 per cent YoY to Rs 11.17 trillion. The share of low-cost deposits — current account and saving accounts (CASA) — stood at 35.62 per cent at the end of March 2023, down marginally from 36.54 per cent a year ago.
The asset quality profile improved with gross non-performing assets declining to 7.53 per cent in March from 11.11 per cent in the same month in 2022. The net NPAs also declined 1.7 per cent in March 2023 from 3.68 per cent a year ago.
The provision coverage ratio improved to 90.34 per cent in March 2023 from 83.61 per cent a year ago.
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