NEW DELHI: Union Bank of India’s net profit for the quarter ended September (Q2FY24) grew by 90% year-on-year (YoY) to Rs 3,511 crore, aided by over a 12% jump in other income and a dip in provisions for bad loans.
Sequentially, the public-sector lender’s profit rose 8.5% from Rs 3,236 crore in the quarter ended June (Q1FY24). Its share closed 5.5% higher at Rs 99.95 a share on the BSE. The bank announced results after the close of trading hours. Capital adequacy ratio (Car) stood at 16.69%, with Tier-I at 14.57 per cent at the end of September.
Net interest income (NII) jumped 9.89% to Rs 9,126 crore in Q2FY24, as against Rs 8,305 crore in the same quarter a year ago. Sequentially, NII jumped by 3.24% from Rs 8,840 crore in Q1 of financial year 24 (FY24). Net interest margin (NIM) rose to 3.18% in Q2FY24, as against 3.15% in Q2FY23. Sequentially, NIM increased from 3.13% in Q1FY24, the bank said in a statement.
Non-interest income comprising fees, commissions, treasury income and recoveries increased by 12.8% YoY to Rs 3,695 crore. Sequentially, it fell marginally from Rs 3,903 crore in Q1FY24. Provisions for non-performing assets (NPAs) fell to Rs 1,691 crore in Q2, from Rs 2,815 crore in the year-ago period.