Union Bank Of India Reports 90% Surge In Q2 Profit, Cuts Net NPAs

Union Bank of India (UBI) announced a staggering 90% increase in its net standalone profit to Rs 3,511 crore during the second quarter of the fiscal year 2023-24, compared to Rs 1,847.7 crore in the same period last year.

The results have been attributed to a series of strategic moves by the bank and significant growth across various sectors. UBI's net non-performing assets (NPAs) have reduced to 1.30% in the latest quarter, down from 2.64% a year ago, a significant improvement that reflects the bank's robust asset quality management.

Investors have responded positively to the news, with UBI's shares closing 5.49% higher at Rs 99.95 per share on the Bombay Stock Exchange (BSE) last Friday. The bank's stock has surged by 22.79% year-to-date and by 89.12% over the past year.

Union Bank of India's net interest income witnessed a growth of 9.89% year-on-year, while its total business, including both loans and deposits, experienced a 9.24% YoY increase. Gross advances, which represent the bank's total outstanding loans, surged by 9.50% YoY, and total deposits grew by 9.04% over the same period.

One notable achievement for the bank was in the Retail, Agri, and MSME (RAM) segment. UBI recorded a 14.62% YoY increase in credit for RAM, with growth rates of 14.68% in Retail, 15.04% in Agriculture, and 14.03% in MSME advances.

Moreover, the bank now boasts a network of 8,521 branches in India and abroad, with the addition of 105 MSME first branches to enhance local enterprise credit access. Additionally, more than 10,000 ATMs were installed to improve customer accessibility.

UBI also placed a special emphasis on supporting social welfare schemes initiated by the central government. The bank facilitated over 3.51 lakh new enrollments under the Pradhan Mantri Jeevan Jyoti Bima Yojana and 28.37 lakh new enrollments under the Pradhan Mantri Suraksha Bima Yojana. Furthermore, it added beneficiaries to the Pradhan Mantri Jan Dhan Yojana, Atal Pension Yojana, and the Union Nari Shakti Scheme for Women Entrepreneurs.