UBIQ1FY24 Mumbai: Union Bank of India on Friday said its net profit in the first quarter of fiscal year 2023-24 (Q1FY24) surged by an impressive 107.67% to Rs 3,236 cr on a year-on-year (YoY).
The net interest income of the bank showed significant growth, increasing by 16.59% YoY to Rs 8,840 crore in Q1FY24.
The bank's liability franchise continues to show strength as CASA (Current Account Savings Account) deposits increased by 7.17% YoY. As of June 30, 2023, the bank boasts a robust total deposits base of Rs. 11,28,052 crores.
The bank's business growth gained momentum, with the total business increasing by an impressive 13.08% YoY. During Q1FY24, gross advances grew by 12.33% YoY, while total deposits witnessed a growth of 13.63% YoY. As of June 30, 2023, the bank's total business stands at Rs. 19,46,509 crore.
The bank reported strong credit performance in retail, agri, and MSME segments. The bank achieved a substantial 14.92% YoY growth in the RAM (Retail, Agriculture, and MSME) segment.
Within this segment, there was notable growth of 16.47% in Retail advances, 13.37% in Agriculture advances, and 14.88% in MSME advances, all on a YoY basis. RAM advances accounted for 55.92% of Domestic Advances.
The bank witnessed a significant reduction in NPAs during Q1FY24. Gross NPA (%) decreased by 288 basis points (bps) on a YoY basis, reaching 7.34%, while Net NPA (%) reduced by 173 bps YoY, reaching 1.58% as of June 30, 2023.
The bank's capital adequacy ratios continue to show strength and improvement. The CRAR (Capital to Risk-Weighted Assets Ratio) improved from 14.42% as of June 30, 2022, to 15.95% as of June 30, 2023. The CET1 (Common Equity Tier 1) ratio also improved significantly, reaching 12.34% as of June 30, 2023, compared to 10.68% as of June 30, 2022.
The bank's cost efficiency and credit cost ratios improved during Q1FY24, leading to enhanced financial returns. The Return on Assets (ROA) improved to 1%, while the Return on Equity (ROE) reached an impressive 18.97%.
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