Union Bank Q1 Results: PAT surges 107% to ₹3,236 crore on higher income, NII up 16%; provisions drop
Union Bank of India Q1 Results: Union Bank of India announced its April-June quarter results for fiscal 2023-24 (Q1FY24) on July 20, reporting a surge of 107 per cent in net profit to ₹3,236 crore on a standalone basis, compared to ₹1,558.5 crore in the corresponding period last year. The profit after tax has almost doubled in the June quarter driven by a higher core income and significantly lower provisions reported by the state-owned lender. The bank's net interest income - the difference between interest earned and interest expended, grew 16.6 per cent to ₹8,839.7 crore in the first quarter of current fiscal, compared to ₹7,581.7 crore in the year-ago period.
The net interest margins of the bank increased to 3.13 per cent in June quarter - up 13 basis points (bps), compared to 3 per cent in the year-ago period. One basis point is one hundredth of percentage point. Net interest margins is a measure of difference between interest earned by the lender and interest it pays out to its lenders.
The bank reported an improvement in the asset quality during the June quarter, as gross non-performing asset (NPA) ratio improved by 288 bps and net NPA decreased by 173 bps compared to year ago period. The bank's gross NPA of the bank fell to 7.34 per cent as on June 30, as compared to 7.53 per cent in the previous quarter, and 10.22 per cent in a year ago period. In absolute terms, gross NPA stood at ₹60,104 crore, down 19.32 percent on-year, and net NPA stood at ₹12,138 crore, down 45.79 percent, as per press release.
Provision coverage ratio of the bank also increased by 611 bps to 90.86 percent in the reporting quarter. Provisions for the quarter fell sharply by 38.9 per cent year-on-year to ₹2,005 crore. Total advances
. Read more on livemint.com
