Union Bank Q1 Results: Profit more than doubles to Rs 3,236 crore in June quarter

Union Bank Q1 Results: State-owned Union Bank of India on Thursday reported more than 100 per cent jump in net profit at Rs 3,236 crore in the June quarter, aided by a decline in bad loans and improvement in interest income. The Mumbai-based lender had posted a net profit of Rs 1,558 crore in the year-ago period.

Total income in the first quarter of the current fiscal rose to Rs 27,381 crore from Rs 20,991 crore in the same period a year ago, Union Bank of India said in a regulatory filing.

Interest earned by the bank improved to Rs 23,478 crore over Rs 18,174 crore in June 2022.

The bank's asset quality showed improvement as gross Non-Performing Assets (NPAs) declined to 7.34 per cent of gross advances at the end of the June quarter from 10.22 per cent a year ago.

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Similarly, net NPAs or bad loans declined to 1.58 per cent as against 3.31 per cent in the year-ago period.

As a result, provisions for bad loans came down to Rs 1,984 crore during the quarter under review as compared to Rs 3,653 crore a year ago.

Capital Adequacy Ratio of the bank also improved to 15.92 per cent as compared to 14.38 per cent recorded at the end of June 2022.

The government currently holds an 83.49 per cent stake in the bank.

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The bank has shifted securities from Held to Maturity (HTM) category to Available for Sale (AFS) category amounting to Rs 8,208.12 crore (face value) during the quarter and resulted shifting loss of Rs 1.51 crore has been fully accounted in accordance with the RBI guidelines, it said.

During the quarter ended June 30, 2023, the bank reported 34 frauds. The amount involved is Rs 14.30 crore with balance outstanding of Rs 0.34 crore which is fully provided, it said.