RBI imposed penalty of Rs.63.60 lakh on PSU Bank

Union Bank of India was hit with a ₹63.60 lakh fine by the Reserve Bank of India (RBI) for not meeting certain regulatory standards. The May 23, 2025, penalty order lists non-compliance with RBI's rules on collateral-free agricultural loans as well as violations of Section 26A of the Banking Regulation Act, 1949. 

The decision comes after the RBI examined Union Bank's financial situation as of March 31 in 2023 and 2024 as part of its regular inspections under the Statutory Inspections for Supervisory Evaluation (ISE) program. 

Two significant infractions were found during the inspections: 

Delay in Transfer of Depositor Education and Awareness Fund: 

The bank did not make the required timely transfer of eligible unclaimed funds to the Depositor Education and Awareness (DEA) Fund.

Based on these findings, the RBI issued a show-cause notice to the bank, asking it to explain why a penalty should not be imposed. After reviewing the bank’s written response and oral submissions during a hearing, the RBI concluded that the violations were valid and warranted financial penalties.

The RBI emphasized that the penalty is strictly related to regulatory compliance shortcomings and does not question the legality or validity of the bank’s agreements with its customers. It also noted that this action is without prejudice to any further actions that may be taken in the future.

This enforcement reflects RBI’s ongoing commitment to ensuring banks adhere strictly to rules, particularly those aimed at protecting depositors and supporting priority sectors like agriculture.

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Union Bank Of India Q4 Results: Profit Beats Estimates, Asset Quality Improves

 

Union Bank of India reported a rise in its standalone net profit in the fourth quarter of financial year 2024-25, beating estimates.

The bottomline of the public sector bank jumped 50.6% to Rs 4,985 crore in the January-March period, compared to Rs 3,310 crore in the year-ago period, according to a stock exchange filing on Thursday. The analysts' consensus estimates compiled by Bloomberg projected Rs 4,320.6 crore.

Net interest income rose 1% to Rs 9,514 crore versus Rs 9,437 crore last year. The Bloomberg estimate was Rs 9,373 crore.

Union Bank of India demonstrated an improvement in asset quality on a sequential basis, with gross non-performing assets ratio decreasing to 3.6% from 3.85% quarter-on-quarter, and net NPA ratio also declining to 0.63% from 0.82%.

The bank's operating profitability showed strong growth, increasing by 17.9% to Rs 7,700 crore compared to Rs 6,533 crore.

Provisions saw an increase of 22.6% year-on-year, rising to Rs 1,544 crore from Rs 1,260 crore. However, on a sequential basis, provisions saw a slight decrease of 3.4%, down to Rs 1,544 crore from Rs 1,599 crore.

The board has recommended a dividend of Rs 4.75 per equity share for fiscal 2025, subject to obtaining the necessary statutory approvals and the approval of the shareholders at the ensuing annual general meeting.

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Union Bank of India Q3 Net profit jumps 28%

On Monday, January 27, the state-owned Union Bank of India said that its net profit for the third quarter, which ended on December 31, 2024, increased 28.2% year over year (YoY) to Rs.4,603.6 crore.

 According to a regulatory filing, Union Bank of India reported a net profit of Rs.3,589.9 crore for the same quarter of the previous fiscal year. The difference between a bank's interest revenue from lending and the interest it pays depositors is known as net interest income (NII), and it rose by 0.8% to Rs.9,240.2 crore from Rs.9,168 crore in the same quarter of FY24.

In the December quarter, the gross non-performing asset (GNPA) was 3.85%, compared to 4.36% in the September quarter. Net NPA was 0.82%, down from 0.98% in the previous quarter. Monetary-wise, net non-performing assets (NPA) were Rs.7,568.4 crore compared to Rs.8,758.6 crore, while gross NPA was Rs.36,554.3 crore compared to Rs.40,498.9 crore. 

Also Read - Quarterly Financial Results of Public & Private sector banks for Q3FY25

Provisions were Rs.1,599.1 crore as opposed to Rs.1,712.2 crore for the quarter and Rs.1,747.8 crore for the quarter. As of December 31, 2024, Union Bank of India's global deposits have increased by 3.76% year over year to Rs.12,16,562 crore. With gross advances rising 5.94% year over year, the bank's whole business rose by 4.70%, contributing to a total business size of Rs.21,65,726 crore.

The RAM (Retail, Agriculture, and MSME) segment witnessed a robust 9.26% year-on-year growth, driven by a 16.36% rise in retail advances, a 4.34% increase in agriculture loans, and a 6.34% uptick in MSME advances. RAM advances now constitute 56.69% of the bank's domestic advances.

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Union Bank of India Q2 Net profit jumps 34%

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.

This profit surge was primarily supported by a reduction in provisions and contingencies. The bottom line rose 28% sequentially.

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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Union Bank of India Q1 profit rises 13.7%

Union Bank of India on July 19 reported a 13.68 percent on-year rise in its profit after tax to Rs 3,679 crore in the first quarter of the current financial year.

On sequential basis, net profit rises 11.11 percent.

Gross non-performing assets (NPA) ratio of the banks reduced to 4.54 percent as on June 30, as compared to 4.76 percent in a quarter ago period and 7.34 percent in a year ago period.

Net NPA ratio of the lender eased to 0.90 percent as on June 30, as against 1.03 percent in a quarter ago period and 1.58 percent in a year ago period.

In the reporting quarter, provision coverage ratio of the bank stood at 93.49 percent as in June 30, as compared to 92.69 percent as on March 31, and 90.86 percent as on June 30, 2023.

In April-June, interest income of the lender stood at Rs 26,364 crore, which was up 12.29 percent on a yearly basis. It stood at Rs 23,478 crore in a year ago period.

Total deposit of Union Bank of India stood at Rs 12.24 lakh crore as on June 30, 2024, as against Rs 11.28 lakh crore as on June 30, 2023.

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Union Bank of India Q4 Results: PAT Jumps 19%; NII Up 14%; Dividend Declare

 

Union Bank of India reported a 19 per cent year-on-year (yoy) increase in fourth quarter standalone net profit at ₹3,310.55 crore, supported by growth in net interest income (NII) and sharp decline in loan loss provisions

The public sector bank had reported a net profit of ₹2,782 crore in the year-ago quarter.

Its board has recommended a dividend of ₹ 3.60 per equity share of ₹ 10 each for FY24.

Net interest income/NII (difference between interest earned and interest expended) rose 14 per cent yoy to ₹9,437 crore (₹8,251 crore in Q4FY23).

Total non-interest income, comprising fee income (loan processing charges, miscellaneous fee income, etc), forex income, profit or loss on sale/revaluation of investments, etc, declined 11 per cent to ₹4,707 crore (₹5,269 crore).

Loan-loss provisions declined 58 per cent to ₹1,485 crore (₹3,567 crore).

Asset quality improved, with gross non-performing assets (NPAs) declining to 4.76 per cent of gross advances as at March-end 2024 against 4.83 per cent as at December-end 2023. NNPAs nudged lower to 1.03 per cent of net advances from 1.08 per cent.

As on March-end 2024, gross advances increased by 14.29 per cent yoy to ₹8,70,776 crore. Total deposits rose 9.28 per cent to ₹12,21,528 crore.

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BoB, PNB among 6 PSU banks with high NPAs

Non Performing asset (NPA) is a loan or advance for which the principal or interest payment has remained overdue for a period of 90 days or more. According to data from Trendlyne, SBI, Bank of Baroda, and PNB are among the 6 PSU banks that reported the highest NPAs in Q3 of FY24. Here's the list:

Bank of India(BoI)

The net NPA of Bank of India stood at 1.41% in Q3FY24, which is the highest among PSU Banks. The PE ratio of the stock is 9.66. Bank of India has a market cap of Rs 61,870 crore.

Union bank of India

Union Bank of India reported a net NPA of 1.08% in Q3FY24. The PE ratio of the stock is 7.74. The firm's market cap is at Rs 1,02,773 crore.

Punjab National Bank (PNB)

Punjab National Bank (PNB) reported a net NPA of 0.96% in Q3FY24. The PE ratio of the stock is at 17.76. Punjab National Bank's market cap is at Rs 1,35,490 crore.

Bank of Baroda(BoB)

The net NPA ratio of Bank of Baroda stood at 0.7% in the December quarter of FY24. The PE ratio of the stock is 7.3. It has a market cap of Rs 1,38,153 crore.

State Bank of India (SBI) 

The net NPA ratio of the State Bank of India (SBI) stood at 0.64% in Q3FY24. The PE ratio of the stock is 10.26. SBI has a market cap of Rs 6,65,731 crore.

Indian Overseas Bank(IOB)

Indian Overseas Bank reported a net NPA of 0.62% in the December quarter of FY24. The PE ratio of the stock is at 50.36, while its market cap is at Rs 1,26,457 crore.

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Union Bank of India Q3 Profit rises 60%

State-owned lender Union Bank of India reported a 60 percent rise in standalone net profit at Rs 3,589.91 crore for the fiscal third quarter. The net profit is in line with Motilal Oswal’s estimate of Rs 3,558.2 crore .

On sequential basis, net profit of the lender was up just 2.24 percent. In July-September quarter, Union Bank of India reported a net profit of Rs 3,511.42 crore.

On sequential basis, net profit of the lender was up just 2.24 percent. In July-September quarter, Union Bank of India reported a net profit of Rs 3,511.42 crore.

This was on back of improved asset quality and increase in net interest income.

The bank's gross non-performing asset (NPA) stood at 4.83 percent, down from 6.38 percent in the September quarter and 7.93 percent in the year-period, the lender said on January 20.

The bank's net NPAs stood at 1.08 percent against 1.30 percent in the pervious quarter and 2.14 percent in Q3FY23.

In absolute terms, the gross NPA of the banks stood at Rs 43,261.88 crore in October-December quarter, as against Rs 54,012.76 crore in a quarter ago period and Rs 63,770.16 crore in a year ago period.

Similarly, net NPA of the lender eased to Rs 9,351.23 crore in a reporting quarter, from Rs 10,471.01 crore in a quarter ago period and Rs 16,195.11 crore in a year ago period.

The net interest income (NII) of the lender in the reported quarter rose just 6.26 percent on-year to Rs 9,168 crore. In July-September quarter, NII stood at Rs 9,126 crore.

The non-interest income of the bank increased 15.29 percent on-year to Rs 3,774 crore. On sequential basis, net non-interest income rose 2.14 percent.

In October-December quarter, net interest margins (NIM) of the bank 3.08 percent, which was down 13 basis points (Bps) on-year and 10 bps on quarter.

One basis point is one hundredth of percentage point.

In a business update earlier this month, the lender reported a 10.67 percent year-on-year (YoY) growth in business at Rs 20.68 lakh crore in the December quarter.

The bank's total advances experienced an 11.44 percent YoY increase, reaching Rs 8.96 lakh crore, while deposits saw a notable 10.09 percent jump to Rs 11.72 lakh crore during Q3FY24.

Retail, Agri and MSME (RAM) segments of the Bank increased by 13.85 percent on-year , where 12.60 percent growth in Retail, 17.88 percent growth in Agriculture and 10.51 percent growth in MSME advances is achieved on a yearly basis.

RAM advances as a percent of Domestic Advances stood at 56.28 percent.

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