Union Bank of India’s Q4 results:
The state-owned Union Bank of India (UBoI) reported strong financial performance for the fourth quarter ending March 31, 2024, with a notable 19% year-on-year rise in net profit to Rs 3,310.55 crore.
This impressive growth momentum has primarily been driven by a surge in net interest income (NII) combined with a significant reduction in loan loss provisions. Compared to the same quarter last year, the public sector bank has shown a substantial enhancement in its financial health, achieving a net profit of Rs 2,782 crore.
The Board of Directors has proposed a dividend of Rs. 3.60 per equity share (equivalent to 36% of the face value of Rs. 10 per equity share) for the fiscal year ended March 31, 2024, subject to necessary approvals. Notably, the bank has experienced a remarkable 61.84% year-on-year increase in net profit during FY24, further highlighting its robust performance.
Furthermore, the bank’s net interest income has displayed commendable growth, expanding by 11.61% year-on-year during the fiscal year. Despite a slight decline in total non-interest income by 11%, the bank has effectively reduced loan loss provisions, which have dropped by 58% to Rs 1,485 crore, down from Rs 3,567 crore in the corresponding period.
Union Bank of India has actively participated in initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), playing a crucial role in opening 2.95 crore accounts under the scheme with a total balance of Rs. 10,918 crore as of March 31, 2024. This reflects the bank’s dedication to providing affordable financial services to marginalized communities.
Furthermore, the bank has shown its commitment to sustainable finance by extending credit facilities to green initiatives. With sanctioned amounts of Rs. 23,059 crore for the Renewable Energy Sector and Rs. 462 crore for Union Green Miles as of March 31, 2024, the bank actively contributes to environmental conservation and renewable energy adoption. Union Bank of India has demonstrated significant improvement, with gross non-performing assets (NPAs) decreasing to 4.76% of gross advances as of March 2024, compared to 4.83% as of December 2023.
Net NPAs have also seen a slight decrease, standing at 1.03% of net advances, highlighting the bank’s efforts in prudent risk management. As of March 2024, gross advances have increased by 14.29% year-on-year to Rs 8,70,776 crore, while total deposits have grown by 9.28% to Rs 12,21,528 crore, indicating robust business expansion and customer confidence in the bank’s services. Union Bank of India’s impressive performance in the fourth quarter demonstrates its resilience and strategic adaptability in a challenging economic environment, solidifying its position as a significant player in the Indian banking sector.
