Financial Results for the Quarter ended September 30, 2024

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by Samiksha

The Board of Directors of Union Bank of India today approved the accounts of the Bank for the Quarter ended September 30, 2024.

Key Highlights in Q2FY25

  1. Strong Financial Performance:

Net Profit of the Bank increased by 34.43% on YoY basis during Q2FY25. Non-interest income of Bank grew by 44.19% on YoY basis during Q2FY25.

  1. Bank continues to demonstrate a strong Liability franchise:

Domestic deposits have increased by 8.12% YoY. Bank now have a total deposits base of Rs.12,41,947 Crores as on September 30, 2024.

  1. Business Growth gaining momentum:

Total Business of the Bank increased by 9.37% YoY, wherein Gross Advances increased by 9.63% YoY & Total Deposit grew by 9.17% YoY. Bank has a total Business of        Rs.21,70,779 Crores as on September 30, 2024.

  1. Growth in Retail, Agri and MSME (RAM) segments:

RAM Segment of the Bank increased by 12.31% YoY, where 14.33% growth in Retail, 15.96% growth in Agriculture and 5.24% growth in MSME advances is achieved on YoY basis. RAM advances as a percent of Domestic Advances stood at 58.71%.

  1. Reduction in NPA:

Gross NPA (%) reduced by 202 bps on YoY basis to 4.36% and Net NPA (%) reduced by         32 bps on YoY basis to 0.98% as on September 30, 2024

  1. Strong Capital Ratios:

CRAR improved from 16.69% as on September 30, 2023 to 17.13% as on                   September 30, 2024. CET1 ratio improved to 13.88% as on September 30, 2024 from 13.05% as on September 30, 2023.

  1.   Improved Returns:

Bank’s Return on Assets & Return on Equity stands at 1.35% and 19.10% respectively during Q2FY25.

Key Summary of Results

In Rs. Crores

Sep-23

(3M)

Jun-24

(3M)

Sep-24

(3M)

YoY%

QoQ%

Sep-23

(6M)

Sep-24

(6M)

YoY%

Interest Income

24,587

26,364

26,708

8.63

1.30

48,065

53,073

10.42

Interest Expenses

15,461

16,952

17,661

14.23

4.18

30,099

34,613

15.00

Net Interest Income

9,126

9,412

9,047

-0.87

-3.88

17,966

18,459

2.74

Non-Interest Income

3,695

4,509

5,328

44.19

18.16

7,598

9,837

29.47

NIM %

3.18

3.05

2.90

-28 bps

-15 bps

3.14

2.97

-17 bps

Operating Profit

7,221

7,785

8,113

12.35

4.21

14,400

15,898

10.40

Total Provisions

3,709

4,106

3,393

-8.52

-17.36

7,652

7,499

-2.00

Profit After Tax

3,511

3,679

4,720

34.43

28.30

6,748

8,399

24.47

As per RBI guidelines, ‘penal interest’ is to be treated as ‘penal charges’. This will now form part of Non-interest income, instead of interest income. Impact of the same is reduction of 11 bps (Q2FY25) & 6 bps (H1FY25) respectively on Net Interest Margin (NIM).

Rs. (In Crores)

Sep-23

Jun-24

Sep-24

YoY%

QoQ%

Balance Sheet

Global Advances

8,47,214

9,12,214

9,28,832

9.63

1.82

Domestic Advances

8,21,437

8,78,797

8,94,404

8.88

1.78

W/w Retail

1,68,256

1,82,316

1,92,375

14.33

5.52

       Agriculture

1,65,506

1,88,939

1,91,913

15.96

1.57

       MSME

1,33,822

1,36,951

1,40,836

5.24

2.84

     RAM advances

4,67,584

5,08,206

5,25,124

12.31

3.33

Deposits

11,37,628

12,24,191

12,41,947

9.17

1.45

W/w CASA

3,88,229

3,99,480

3,96,295

2.08

-0.80

   Retail Term Deposits

4,48,169

4,62,211

4,78,114

6.68

3.44

CASA Ratio (%)- domestic

34.66

33.40

32.72

-194

-68

GNPA

54,012

41,423

40,499

-25.02

-2.23

NNPA

10,421

7,902

8,759

-15.95

10.85

 

Ratios (%)

Sep-23

Jun-24

Sep-24

YoY

bps

QoQ

bps

   Asset Quality

GNPA

6.38

4.54

4.36

-202

-18

NNPA

1.30

0.90

0.98

-32

8

PCR

92.03

93.49

92.79

76

-70

TPCR

80.71

80.92

78.37

-234

-255

Credit Cost

0.81

0.73

1.09

28

36

 

CET-1 ratio

13.05

13.81

13.88

83

7

Tier-1 ratio

14.57

15.13

15.23

66

10

CRAR

16.69

17.02

17.13

44

11

 Network:

  • 8,555 Branches including foreign branches
  • 9,124 ATMs
  • 22,406 BC points
  • 135 MLPs (MSME Loan Points)
  • 137 RLPs (Retail Loan Points)
  • 54 ALPs (Agriculture Loan Points)
  • 99 Union MSME First Branches
  • 1,685 Gold Loan Points
  • 16 LCBs & 37 MCBs
  • 6 SAMBs & 30 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 2.74 lakhs new enrollments were done by the Bank for the quarter ended September 30, 2024.          

  • Pradhan Mantri Suraksha Bima Yojana (PMSBY):

This is Government- backed accidental insurance scheme; where 9.83 lakhs new enrollments were done by the Bank for the quarter ended September 30, 2024.

  • Pradhan Mantri Jan Dhan Yojana (PMJDY):

Our bank is instrumental in opening 3.08 Crores accounts under PMJDY Scheme with balance of Rs. 10,929 Crores as on September 30, 2024. The corresponding figure was 2.87 Crores account with balance of Rs. 9,286 Crores as on September 30, 2023. 

  • Atal Pension Yojana (APY):

APY is a pension scheme, primarily targeted at the individuals working in unorganized sector, 2.06 lakh new enrollments were done by Bank for the quarter ended                      September 30, 2024.

  • Union Nari Shakti Scheme for Women Entrepreneurs:

   Sanctioned 7,449 Applications for Rs.728 crores during Q2 FY25

  • Credit facility towards Green initiatives: -
  1. Renewable Energy Sector: -Sanctioned Rs. 26,872 crores as on September 30, 2024
  2. Union Green Miles: -Sanctioned amount Rs. 572 crores as on September 30, 2024

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