Union Bank of India Q4 results: Net profit up 93% to ₹2,782 crore in Q4FY23
Union Bank of India Q4 results: Net profit up 93% to ₹2,782 crore in Q4FY23, to announce dividend of ₹3 per share
Public sector lender Union Bank of India has announced the results of Q4FY23 i.e. the fourth quarter (January-March). The bank's standalone net profit for the quarter grew 93.27% year-on-year (YoY) to Rs 2,782 crore. The bank had registered a net profit of Rs 1,440 crore in the same quarter last year.
The bank's Net Interest Income (NII) grew 21.88% year-on-year (YoY) to Rs 8,251 crore in the March quarter. The board of directors of the bank has also declared a dividend of Rs 3 per share for the shareholders.
The bank's current and savings account deposits (CASA) grew by 4.47% year-on-year (YoY) to Rs 11.17 lakh crore in the fourth quarter. The asset quality of the bank has also improved.
The bank's gross non-performing assets (Gross NPA) declined by 358bps to 7.53% on a year-on-year (YoY) basis at the end of the March quarter. At the same time, the bank's Net NPA decreased by 198bps on a year-on-year basis to 1.70% in the March quarter.
The total business of the bank grew by 10.23% on a year-on-year (YoY) basis. Year-on-year (YoY) growth in gross advances (YoY) by 13.05% and total deposits by 8.26%. At the same time, till March 31, 2023, the total business of the bank was Rs 19.27 lakh crore.
The bank projects a growth of 10-12% in advances for March 2024, the same as FY23. At the same time, 8-10% growth has been estimated in deposit growth, which is less than the previous estimate.
The bank has kept the guidance for Net Interest Margin (NIM) unchanged at 3%. The company plans to bring down gross NPAs to less than 6%, with a reduction of around Rs 12,000 crore and a gross recovery of Rs 16,000 crore.