Union Bank of India Q3 Results, Net profit jumps 28% to Rs 4,604 crore, Shares surges over 5%

Public sector lender, Union Bank of India while announcing quarterly financial results, reported a 28.2% year-on-year (YoY) surge in net profit at Rs 4,603.6 crore for the third quarter that ended December 31, 2024. In the corresponding quarter of the previous fiscal, Union Bank of India posted a net profit of Rs 3,589.9 crore, the bank said in a regulatory filing.

Net interest income increased by 0.8%, and stood at Rs 9,240.2 crore against Rs 9,168 crore in the corresponding quarter of FY24. The gross non-performing asset (GNPA) stood at 3.85% in the December quarter against 4.36% in the September quarter. Net NPA came at 0.82% against 0.98% quarter-on-quarter.

In terms of asset quality, gross NPA stood at Rs 36,554.3 crore against Rs 40,498.9 crore quarter-on-quarter, whereas net NPA came at Rs 7,568.4 crore against Rs 8,758.6 crore quarter-on-quarter. Provisions stood at Rs 1,599.1 crore against Rs 1,712.2 crore quarter-on-quarter and Rs 1,747.8 crore.

The bank has reported a 3.76% year-on-year growth in global deposits, reaching Rs 12,16,562 crore as of December 31, 2024. The bank's total business grew by 4.70% year-on-year, with gross advances increasing by 5.94% year-on-year to contribute to a total business size of Rs 21,65,726 crore.

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Capital adequacy also showed significant improvement, with the CRAR rising to 16.72% as of December 31, 2024, compared to 15.03% a year earlier. The CET1 ratio increased to 13.59%, up from 11.71% during the same period. Return on Assets improved by 23 basis points (bps) year-on-year to 1.30%, while Return on Equity rose by 50 bps year-on-year to 17.75%.

Shares of the PSU Bank are trading higher by over 5% at Rs 111.36.