Union Bank of India’s net profit increased by 93.3 per cent year on year (YoY) to Rs 2,782 crore for the fiscal quarter ended March 2023 (Q4FY23) on the back of significant growth in Net Interest revenue (NII) and non-interest revenue.
The bank’s net profit increased by 61.18 percent to Rs 8,433 crore in FY23, from Rs 5,232 crore in FY22.
The board of directors of the Mumbai-based institution has recommended a dividend of Rs 3.0 per share (Rs 10 apiece) for FY23, subject to shareholder approval.
Union Bank’s NII (interest revenues minus interest expenses) increased by 21.9 per cent YoY to Rs 8,251 crore in Q4FY23, up from Rs 6,769 crore in Q4FY22. The net interest margin increased from 2.75 percent in Q4FY22 to 2.98 percent in Q4FY23.
Non-interest revenue increased by 62.48 per cent YoY to Rs 5,269 crore in Q4FY23, according to a bank statement.
In FY23, its advances increased by 13.05 per cent YoY to Rs 8.09 trillion. RAM advances – Retail, Agriculture, and MSME (RAM) – grew at a faster rate of 14.94 per cent to Rs 4.36 trillion by the end of March 2023.
Total deposits rose 8.26 per cent YoY Rs 11.17 trillion. At the end of March 2023, the share of low-cost deposits — current account and saving accounts (CASA) — was 35.62 per cent, down from 36.54 per cent the previous year.
The asset quality profile improved, with gross non-performing assets falling from 11.11 per cent in March 2022 to 7.53 per cent in March 2023. Net NPAs fell 1.7 per cent in March 2023, from 3.68 percent the previous year.
The provision coverage ratio increased to 90.34 percent in March 2023, up from 83.61 percent the previous year.
