NEW DELHI: Union Bank of India on Tuesday reported a 183% jump in its consolidated net profit to Rs 1,510 crore for the September quarter, driven by recovery from the DHFL account that was written off earlier. The net profit was Rs 533.87 crore in the same quarter last year.
The bank’s core net interest income grew 8.52% to Rs 6,829 crore on a loan growth of about 3% and an expansion in net interest margin to 2.95% as against 2.78% in the year-ago period. The non-interest income during July-September 2021 grew 65.32% to Rs 3,978 crore, mainly on the back of a Rs 1,764-crore recovery in written-off accounts.
The bank is witnessing healthy loan growth on the retail and agriculture side but the corporate uptick is sluggish, Rajkiran Rai G. MD & CEO of Union Bank of India said adding that it is targeting to end FY22 with a loan growth of up to 8%. Fresh slippages stood at Rs 6,745 crore, of which around Rs 2,600 crore came from entities linked to Srei Group, said Rai adding it has taken a 65% provision on the exposure to the troubled NBFC.
Healthy loan growth
The bank is witnessing healthy loan growth on the retail and agriculture side but the corporate uptick is sluggish, Rajkiran Rai G. MD & CEO of Union Bank of India, said.