Union Bank of India Q4 Results: PAT Jumps 19% To Rs 3310 Cr; NII Up 14%; Declares 36% Dividend

State-owned Union Bank of India (UBoI) on Friday posted robust financial results for the fourth quarter ended March 31, 2024, a 19% year-on-year increase in net profit to Rs 3,310.55 crore.

This impressive growth trajectory has been primarily fueled by a surge in net interest income (NII) coupled with a significant decrease in loan loss provisions.

The public sector bank has reported a substantial improvement in its financial health compared to the year-ago quarter, with a net profit of Rs 2,782 crore.

The Board of Directors has recommended a dividend of Rs. 3.60 per equity share (36% of the face value of Rs. 10 per equity share) for the fiscal year ended March 31, 2024, subject to requisite approvals.

Notably, the bank has witnessed a remarkable 61.84% year-on-year surge in net profit during FY24, further underscoring its robust performance.

Moreover, the net interest income of the bank has demonstrated commendable growth, expanding by 11.61% on a year-on-year basis during the fiscal year.

Despite a marginal decline in total non-interest income by 11%, the bank has successfully managed to curtail loan-loss provisions, which plummeted by 58% to Rs 1,485 crore, down from Rs 3,567 crore in the corresponding period.

This reduction underscores the bank's proactive approach towards risk management and asset quality preservation.

The Union Bank of India has been actively participating in schemes such as the Pradhan Mantri Jan Dhan Yojana (PMJDY). The bank has played a pivotal role in opening 2.95 crore accounts under the PMJDY Scheme with a balance of Rs. 10,918 crore as of March 31, 2024, reflecting its commitment to providing economically priced financial services to the underserved sections of society.

Moreover, the Union Bank of India has demonstrated its commitment to sustainable finance by extending credit facilities to green initiatives. With a sanctioned amount of Rs. 23,059 crores for the Renewable Energy Sector and Rs. 462 crores for Union Green Miles as of March 31, 2024, the bank is actively contributing to environmental conservation and renewable energy adoption.

Union Bank of India has exhibited significant improvement, with gross non-performing assets (NPAs) declining to 4.76% of gross advances as of March-end 2024, compared to 4.83% as of December-end 2023.

Additionally, net NPAs have also witnessed a marginal decrease, standing at 1.03% of net advances, underscoring the bank's efforts towards prudent risk management.

As of March-end 2024, gross advances have surged by 14.29% year-on-year to Rs 8,70,776 crore, while total deposits have registered a notable growth of 9.28% to Rs 12,21,528 crore, indicating robust business expansion and customer confidence in the bank's offerings.

Union Bank of India's stellar performance in the fourth quarter underscores its resilience and strategic agility amidst a challenging economic landscape, positioning it as a formidable player in the Indian banking sector.