Union Bank of India’s net profit rose by 49.3 per cent year on year at Rs 1,085 crore for the third quarter ended December 2021 (Q3FY22) on improvement in interest margins and sharp fall in provisions and contingencies.
The net profit was Rs 726 crore in Q3FY21. However, profit declined from Rs 1,526 crore in the second quarter ended September 2021 (Q2FY22).
The Mumbai-based public sector lender's stock closed 0.83 per cent lower at Rs 47.6per share on BSE.
The bank's Net Interest Income (NII) rose by 8.9 per cent to Rs 7,174 crore in Q3FY22 as against Rs 6,590 crore in Q3FY21. Sequentially, NII rose by 5.05 per cent from Rs 6,829 crore in Q2FY22, according to the analyst's presentation.
The net interest margins improved to 3.0 per cent in Q3FY22 from 2.94 per cent in Q3FY21 and 2.95 per cent in Q2FY22.
The non-interest income fell by 15.01 per cent on YoY basis to Rs 2,524 crore in Q3FY22 from Rs 2,970 crore in Q3FY21. Sequentially, it declined by 36.55 per cent from Rs 3,978 crore in the quarter ended September 2021.
Union Bank's provisions and contingencies declined sharply to Rs 2,549 crore in Q3FY22 from Rs 5,210 crore in Q3FY21 and also from Rs 3,723 crore in Q2FY22.
Its gross NPAs declined to 11.62 per cent in December 2021 from 13.49 per cent in the year ago period. Sequentially, they declined from 12.64 per cent in September 2021.
The net NPAs were at 4.09 per cent in December 2021 up from 3.27 per cent a year ago. Sequentially, they declined from 4.61 per cent in September 2021.
The provision coverage ratio stood at 82.8 per cent at end of December 2021 down from 86.18 per cent a year ago. Sequentially, it improved from 81.77 per cent as of September 2021.
Its advances increased by 2.69 per cent year on year (YOY) to Rs 6,69, 531 crore.
Its deposits increased by 6.24 per cent YOY to Rs 9,37,455 crore in December 2021.
The bank's capital adequacy ratio stood at 13.92 per cent in December 2021, up from 12.98 per cent in December 2020.
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