Public sector lender Union Bank of India (UBI) reported a significant 34% year-on-year increase in consolidated net profit for the second quarter of FY2025, reaching ₹4,720 crore, compared to ₹3,511 crore in the same quarter last year.
NII declined marginally by 0.9% to ₹9,047 crore from ₹9,126 crore a year ago, as interest expenses rose slightly during the quarter. Despite this, total income remained steady, supported by a healthy contribution from non-interest income sources and recovery from written-off accounts.
The bank’s asset quality continued to improve during the quarter. The gross non-performing assets (NPA) ratio fell to 4.36% as of September 2024, down from 4.54% in the previous quarter, and showing a sharper decline from 6.38% in Q2 FY2024.
Similarly, the net NPA ratio was recorded at 0.98%, up from 0.90% in the previous quarter, but a good improvement from 1.30% in the same quarter last year.
Additionally, Union Bank of India maintained a provision coverage ratio (PCR) of 92.79%, ensuring adequate coverage for potential defaults. The bank’s capital adequacy ratio under Basel III guidelines stood at 17.13%, comfortably above regulatory requirements.
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