State-owned Union Bank of India on Saturday reported a 12 per cent rise in net profit to Rs 4,116 crore during the first quarter of this financial year.
In the same quarter of the prior fiscal year, the Mumbai-based lender had a net profit of Rs 3,679 crore. According to a regulatory statement by Union Bank of India, the total income increased from Rs 30,874 crore in the previous quarter to Rs 31,791 crore in the June 2025 quarter.
The bank's interest income increased to Rs 27,296 crore from Rs 26,364 crore during the FY25 June quarter. However, compared to Rs 9,412 crore in the same period last year, net interest income decreased to Rs 9,113 crore during the quarter. From Rs 7,785 crore to Rs 6,909 crore in the same quarter of the previous fiscal year, the bank's operating profit also fell 11%.
Gross non-performing assets (NPAs) decreased from 4.54% of gross loans at the end of the June quarter to 3.52% at the end of the June quarter, indicating an improvement in the bank's asset quality.
By the end of June 2024, its gross advance had risen from Rs 9,12,214 crore to Rs 9,74,489 crore, a 6.83 percent gain. In a same vein, its net non-performing assets (NPAs), or bad loans, decreased to 0.62 percent from 0.90 percent during the same time last year.
Consequently, bad loan provisions decreased from Rs 1,651 crore in the first quarter of last year to Rs 1,153 crore in the first quarter.
The Provision Coverage Ratio (PCR) increased by 116 basis points, from 93.49 percent to 94.65 percent. Concurrently, the lender reported that Return on Assets (ROA) improved by 5 basis points, from 1.06 percent in June 2024 to 1.11 percent in June 2025.
The bank's capital adequacy ratio increased from 17.02 percent in the same quarter of FY25 to 18.3 percent. By the end of June 2024, the entire business had grown by 5% to Rs 22,14,422 crore from Rs 21,08,762 crore.
No comments:
Post a Comment