Union Bank Q2 Profit Surges 34% to Rs 4,720 cr

New Delhi, Oct 21 (PTI) State-owned Union Bank of India on Monday logged a 34 per cent growth in its net profit at Rs 4,720 crore for the second quarter ended September 2024.

The Mumbai-based lender had earned a net profit of Rs 3,511 crore in the same quarter a year ago.

The total income increased to Rs 32,036 crore during the quarter under review against Rs 28,282 crore in the same period last year, Union Bank of India said in a regulatory filing.

The bank reported interest income of Rs 26,708 crore during the quarter compared to Rs 24,587 crore in the year-ago period.

However, net interest income (NII) declined 0.87 per cent to Rs 9,047 crore from Rs 9,126 crore in the second quarter of the previous year.

The net interest margin too moderated to 2.9 per cent from 3.18 per cent at the end of the second quarter of the last financial year.

As regards asset quality, the bank witnessed improvement with gross non-performing assets (NPAs) declining to 4.36 per cent of the gross loans by the end of September 2024 from 6.38 per cent a year ago.

Similarly, net NPAs or bad loans declined to 0.98 per cent from 1.30 per cent at the end of the second quarter of the previous fiscal.

Its total Business increased by 9.37 per cent, wherein gross advances increased by 9.63 per cent and total deposits grew by 9.17 per cent. The bank's total business stood at Rs 21,70,779 crores as of September 30, 2024.

Capital adequacy ratio increased from 16.69 per cent as of September 30, 2023, to 17.13 per cent by September 30, 2024, it said.

The bank's return on assets and return on equity stands at 1.35 per cent and 19.10 per cent, respectively, during Q2 FY25, it added.