Ms A. Manimekhalai, Managing Director & CEO, Union Bank Of India, flanked by Shri Nidhu Saxena, Shri Ramasubramanian & Shri Sanjay Rudra , Executive Directors and Shri P K Samal, Chief Financial Officer, Union Bank of India at the press conference held in Mumbai on the occasion of announcement of Financial Results for the Quarter/Half year ended September 30, 2023 – Photo By GPN
- Return on Average Assets improved from 0.57% in H1FY23 to 1.04% in H1FY24 While Return on Equity improved from 11.84% in H1FY23 to 17.26% in H1FY24.
- The CASA deposits increased by 4.45% YoY to Rs.3,88,229 Crore . Total deposit stood at Rs.11,37,628 Crores at the end of Q2FY24.
- Operating Profit of the Bank improved by 19.76% YoY to Rs. 14,400 Crore in H1FY24 while Net Profit grew by 98.11% YoY to Rs 6,748 Crore in H1FY24.
- Bank registered 14.68% YoY growth in Retail, 15.04% YoY growth in Agriculture and 14.03% YoY growth in MSME advances.
- Union Bank of India has a good dividend yield of 3%. The bank may increase the dividend this year.
- Net Profit of the Bank increased by 90.00% on YoY basis during Q2FY24. Net interest income of Bank grew by 9.89% on YoY basis during Q2FY24.
The Board of Directors of Union Bank of India today approved the accounts of the Bank for the Quarter ended September 30, 2023.
MUMBAI, 28 OCTOBER, 2023 (GPN): Mumbai Based Public Sector Lender Union Bank of India announced it’s Q2FY24 Results, The bank’s net profit for the quarter ended September (Q2FY24) grew by 90 per cent year-on-year (Y-o-Y) to Rs 3,511 crore, aided by over a 12 per cent rise in other income and a dip in provisions for bad loans. Sequentially, the public-sector lender’s profit went up 8.5 per cent from Rs 3,236 crore in the quarter ended June (Q1FY24).
Its stock closed 5.5 per cent higher at Rs 99.95 a share on BSE. The bank announced results after the close of trading hours.
Its Capital adequacy ratio (Car) stood at 16.69 per cent, with Tier-I at 14.57 per cent at the end of September.
The bank’s net interest income (NII) expanded 9.89 per cent to Rs 9,126 crore in Q2FY24, compared to Rs 8,305 crore in the same quarter a year ago. Sequentially, NII rose by 3.24 per cent from Rs 8,840 crore in Q1 of financial year 24 (FY24).
On 9th August Ms. A. Manimekhalai, MD & CEO of Union Bank Of India had handed over the dividend cheque of Rs 1,712 crore for the financial year 2022-23 to the Hon’ble Finance Minister Smt Nirmala Sitharaman, Department Of Financial Services, GOI.
Also at the start of the Quarter of Q2FY24 in July Union Bank of India celebrated the 1st Anniversary of its “Empower Her” and “Power Him” Initiatives, empowering women and men for a brighter future. These groundbreaking programs promote gender equality and financial inclusion. The team assembled and donated 20 bicycles to underprivileged children from tribal areas in Mumbai, symbolizing their commitment to empowering and positively impacting society.
Union Bank of India is one of the leading public sector banks of the country. The Bank is a listed entity, and the Government of India holds 76.99 percent in Bank’s total share capital. The Bank, having its headquarters at Mumbai (India), was registered on November 11, 1919 as a limited company.
Main features of the result
|
in ₹ crore |
second of FY 23 quarter |
1st of FY 24 quarter |
Second of FY 24 quarter |
% year on year |
quarter to quarter % |
H1FY23 |
H1FY24 |
year after year , |
| interest income |
19,682 |
23,478 |
24,587 |
24.92 |
4.72 |
37,856 |
48,065 |
26.97 |
| interest expense |
11,377 |
14,638 |
15,461 |
35.90 |
5.62 |
21,969 |
30,099 |
37.01 |
| net interest income |
8,305 |
8,840 |
9,126 |
9.89 |
3.24 |
15,887 |
17,966 |
13.09 |
| non-interest income |
3,276 |
3,903 |
3,695 |
12.79 |
-5.33 |
6,093 |
7,598 |
24.71 |
| NIM % |
3.15 |
3.13 |
3.18 |
3 bps |
5 bps |
3.06 |
3.14 |
8 bps |
| operating profit |
6,577 |
7,179 |
7,221 |
9.79 |
0.58 |
12,025 |
14,400 |
19.76 |
| total provision |
4,729 |
3,943 |
3,709 |
-21.57 |
-5.92 |
8,618 |
7,652 |
-11.21 |
| profit after tax |
1,848 |
3,236 |
3,511 |
90.00 |
8.50 |
3,406 |
6,748 |
98.11 |
|
₹ ( Crore In) |
second of FY 23 quarter |
1st quarter of fiscal year 2 4 |
Second of FY 24 quarter |
% year on year |
quarter to quarter % |
|
comparison Letter |
|||||
| global advance |
7,73,690 |
8,18,457 |
8,47,214 |
9.50 |
3.51 |
| domestic advance |
7,52,469 |
7,93,448 |
8,21,437 |
9.17 |
3.53 |
| in which From retail |
1,46,715 |
1,62,373 |
1,68,256 |
14.68 |
3.62 |
| Agriculture |
1,43,874 |
1,53,615 |
1,65,506 |
15.04 |
7.74 |
| MSME |
1,17,354 |
1,27,745 |
1,33,822 |
14.03 |
4.76 |
| RAM advance |
4,07,943 |
4,43,733 |
4,67,584 |
14.62 |
5.38 |
| Amount deposited |
10,43,265 |
11,28,052 |
11,37,628 |
9.04 |
0.85 |
| in which From house |
3,71,697 |
3,85,084 |
3,88,229 |
4.45 |
0.82 |
| retail term Deposit (<2 Crore ) |
4,37,866 |
4,36,386 |
4,43,274 |
1.24 |
1.58 |
| house Ratio , |
35.64 |
34.60 |
34.66 |
-98 bps |
6 bps |
| GNPA |
65,391 |
60,104 |
54,012 |
-17.40 |
-10.14 |
| NNPA |
19,193 |
12,138 |
10,421 |
-45.70 |
-14.15 |
| Ratio (%) |
second of FY 23 quarter |
1st of FY 24 quarter |
Second of FY 24 quarter |
bps year on year |
quarter by quarter bps |
|
asset properties |
|||||
| Ratios (%) | Q2FY23 | Q1FY24 | Q2FY24 | YoY
bps |
QoQ
bps |
| Asset Quality | |||||
| GNPA | 8.45 | 7.34 | 6.38 | -207 | -96 |
| NNPA | 2.64 | 1.58 | 1.30 | -134 | -28 |
| PCR | 86.61 | 90.86 | 92.03 | 542 | 117 |
| TPCR | 70.65 | 79.80 | 80.71 | 1006 | 91 |
| Credit Cost | 1.50 | 0.97 | 0.81 | -69 | -16 |
| CET-1 ratio | 10.67 | 12.34 | 13.05 | 238 | 71 |
| Tier-1 ratio | 12.26 | 13.86 | 14.57 | 231 | 71 |
| CRAR | 14.50 | 15.95 | 16.69 | 219 | 74 |
Network:
-
- 8,521 Branches including foreign branches
- 10,013 ATMs
- 18,018 BC points
- 135 MLPs (MSME Loan Points)
- 159 RLPs (Retail Loan Points)
- 48 ALPs (Agriculture Loan Points)
- 105 MSME First Branches
- 1,685 Gold Loan Points
- 19 LCBs & 40 MCBs
- 9 SAMBs & 29 ARBs
Financial Inclusion schemes:
Financial Inclusion schemes launched by GOI with an aim to eliminate barriers and provide economically priced financial services to the less accessible sections of the society through government-backed schemes like PMJJBY, PMSBY, PMJDY and APY.
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):
This is a Government- backed insurance scheme; where 3.51 lakhs new enrollments were done by the Bank for the quarter ended September 30, 2023.
- Pradhan Mantri Suraksha Bima Yojana (PMSBY):
This is Government- backed accidental insurance scheme; where 28.37 lakhs new enrollments were done by the Bank for the quarter ended September 30, 2023.
- Pradhan Mantri Jan Dhan Yojana (PMJDY):
Our bank is instrumental in opening 2.87 Crores accounts under PMJDY Scheme with balance of Rs. 9,286 Crores as on 30.09.2023. The corresponding figure was 2.82 Crores account with balance of Rs. 7,934 Crores as on 30.09.2022.
- Atal Pension Yojana (APY):
APY is a pension scheme, primarily targeted at the individuals working in unorganized sector, 2.18 lakh new enrollments were done by Bank for the quarter ended September 30, 2023.
- Union Nari Shakti Scheme for Women Entrepreneurs:
Sanctioned 12,812 Applications for Rs.1,376 crores during H1 FY24
- Credit facility towards Green initiatives: –
- Renewable Energy Sector: -Sanctioned Rs. 22,998 crores as on 30.09.2023
- Union Green Miles: -Sanctioned amount Rs. 316 crores as on 30.09.2023
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