- Union Bank of India continues to demonstrate a strong liability franchise: – The Domestic deposits increased by 8.42% YoY to Rs.11,99,197 Crore. Total deposit stood at Rs.12,21,528 Crores at the end of Q4FY24.
- Credit in Retail, Agri and MSME (RAM) segments grown by 13.82% on YoY basis:
Bank registered 11.14% YoY growth in Retail, 20.95% YoY growth in Agriculture and 8.58% YoY growth in MSME advances. - Profitability Ratios: – Return on Average Assets improved from 0.69% in FY23 to 1.03% in FY24 While Return on Equity improved from 13.26% in FY23 to 15.58% in FY24.
- Improved Asset Quality: Gross NPA (%) reduced by 277 bps on YoY basis to 4.76% and Net NPA (%) reduced by 67 bps on YoY basis to 1.03% as on 31.03.2024.
MUMBAI, 11 MAY, 2024 (GPN): The Board of Directors of Union Bank of India today approved the accounts of the Bank for the Quarter/Year ended March 31, 2024. The State-owned Union Bank of India (UBoI) on Friday declared 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.
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 3.00 lakhs new enrollments were done by the Bank for the quarter ended March 31, 2024.
Pradhan Mantri Suraksha Bima Yojana (PMSBY):
This is Government backed accidental insurance scheme; where 7.83 lakhs new enrollments were done by the Bank for the quarter ended March 31, 2024.
Pradhan Mantri Jan Dhan Yojana (PMJDY):
Our bank is instrumental in opening 2.95 Crores accounts under PMJDY Scheme with balance of Rs. 10,918 Crores as on 31.03.2024. The corresponding figure was 2.80 Crores account with balance of Rs. 9,046 Crores as on 31.03.2023.
Atal Pension Yojana (APY):
APY is a pension scheme, primarily targeted at the individuals working in unorganized sector, 2.00 lakh new enrollments were done by Bank for the quarter ended March 31, 2024.
Union Nari Shakti Scheme for Women Entrepreneurs:
Sanctioned 22,676 Applications for Rs.2,555 crores during 12M FY24
Credit facility towards Green initiatives:
1) Renewable Energy Sector: -Sanctioned Rs. 23,059 crores as on 31.03.2024
2) Union Green Miles: -Sanctioned amount Rs. 462 crores as on 31.03.2024
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. Ends/GPN
ALSO READ:
Be the first to comment on "Union Bank of India Announces Q4FY24 and 12M FY24 Results: Net Profit Soars 19% At Rs 3310 Crores on Lower Provisions; NII Up 14%; Declares 36% Dividend"