Union Bank of India Q2 Results: Net profit soars by 34% to Rs 4,720 crore

NII declined marginally by 0.9% to Rs 9,047 crore from Rs 9,126 crore a year ago, as interest expenses rose slightly during the quarter.

Union Bank of India Q2 Results: Net profit soars by 34% to Rs 4,720 crore
Union Bank of India Q2 Results: Net profit soars by 34% to Rs 4,720 crore

New Delhi: Public sector lender Union Bank of India (UBI) reported a significant 34% YoY increase in consolidated net profit for the second quarter of FY2025, reaching Rs 4,720 crore, compared to Rs 3,511 crore in the same quarter last year. This profit surge was aided by a reduction in provisions and contingencies. The bottom line rose 28% sequentially.

NII declined marginally by 0.9% to Rs 9,047 crore from Rs 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.

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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. 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, the 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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