Mumbai: Union Bank of India (UBI) with more than 8473 branches, 9342 ATMs and 20646 banking correspondent points across the globe forged to have deeper penetration having huge acumen. The bank has implemented a module with an external agency to reinforce the Current Account and Savings Account campaigns (CASA). Special and dedicated branches are also implemented for a faster and smoother turnaround time. Said Manimekhalai, MD & CEO.
Seen in the photo from left to right are: Shri Sanjay Rudra Executive Director, Shri Nitesh Ranjan, Executive Director, Ms. A. Manimekhalai, MD & CEO, Shri Ramasubramanian S. – Executive Director and Shri Pankaj Dwivedi – Executive Director.
The bank has also pioneered the financial inclusion schemes mooted by the government of India such as PMJJBY, PMSBY, PMJDY, APY etc.
The bank reported a robust growth of 13.7 per cent year-on-year / yoy increase in the first quarter net profit at ₹3,679 crore, helped by decent growth in net interest income and non-interest income, decline in NPA provisions and tax expenses, and write-back in provisions for non-performing investments.
While we look at the bank’s net interest income (difference between interest earned and interest expended) was up about 6 per cent y-o-y at ₹9,412 crore (₹8,840 crore in the year-ago quarter).
The Bank has projected advances and deposits to grow 11 – 13 per cent and 9 – 11 per cent, respectively in FY25. It expects NIM to be in the 2.8 – 3.0 per cent range.
Then non-interest income, comprising income (including commission) from non-fund based banking activities, fees, earnings from foreign exchange, profit/loss on sale of assets, profit/loss (including revaluation) from investments, recovery from accounts written off, etc, rose about 16 per cent to ₹4,509 crore (₹3,903 crore).
Net interest margin declined to 3.05 per cent in the reporting quarter from 3.13 per cent in the year-ago quarter. The Bank received a higher write-back in provision on non-performing investments of ₹300 crore (₹107 crore). Tax expenses declined to ₹1,351 crore (₹1,938 crore).
The gross non-performing assets (NPA) to gross advances position improved to 4.54 per cent as at June-end 2024, against 4.76 per cent as of March-end 2024.
The net NPA to net advances position improved to 0.90 per cent against 1.03 per cent.
Total deposits increased by 8.52 per cent yoy to stand at ₹12,24,191 crore as of June-end 2024. Within this, domestic deposits were up 7.48 per cent at ₹11,96,168 crore.
The gross non-performing asset (GNPA) stood at 4.54% in the June quarter against 4.76% in the March quarter. Net NPA came at 0.90% against 1.03% quarter-on-quarter.
Gross Advances rose by 11.46 per cent yoy to stand at ₹9,12,214 crore. Within this, domestic and overseas advances rose 10.76 per cent (to ₹8,78,797 crore) and 33.62 per cent (to ₹33,417 crore), respectively.
As a new initiative in the renewable energy sector, the bank sanctioned Rs 26,858 crore and Union Green Miles sanctioned Rs 525 crore as of June 30 2024.
Overall the bank is poised for renewed growth and new milestones in the coming days.
