Union Bank logs 32% yoy growth in Net Profit for Q1FY23; stock gains ~1%

27 Jul 2022 , 02:47 PM

Union Bank of India’s net profit registered a growth of 32% on y-o-y basis, fueled by an 8% increase in net interest income (NII), on the back of loan growth from both retail as well as corporate segments even though total provisions declined.

Company’s Net profit jumped to Rs1,558 crore in the quarter ended June 2022 from Rs1,181 crore the previous year, owing to a 13% increase in advances.

NII, or the difference between loan interest and deposit interest, witnessed a growth of 8% yoy at Rs7,582 crore in Q1FY23, as against Rs7,013 crore in the previous corresponding quarter. However, Other income grew marginally by 1% yoy, mainly due to a 64% decline in treasury income to Rs395 crore in Q1FY23 against Rs1,100 crore in the same quarter previous year.

The bank’s net NPAs improved to 3.31% in Q1FY23, as against 4.69% in the previous corresponding quarter. While recoveries jumped to Rs1,481 crore during the quarter under review from Rs1,147 crore in Q1FY22.

However, the bank kept its provisions in place, which resulted in an increase in the provision coverage ratio to 84.75% during Q1FY23, as compared to 81.43% in the previous corresponding quarter.

At around 2.51 PM, Union Bank of India was trading at Rs37.55 up by Rs0.45 or 1.21% from its previous closing of Rs37.10 on the BSE. The scrip touched intraday high and low of Rs37.60 and Rs37 respectively.