Union Bank of India Q4 profit rises 23%
UBI Chief Executive and Managing Director Rajkiran Rai G
Mumbai: State-owned Union Bank of India on Friday reported 22.68 per cent jump in consolidated net profit at Rs 1,557.09 crore for March quarter 2021-22 helped by a Rs 627 crore gain through a stake-sale in its insurance arm and benefits through low cost of deposits.
On a standalone basis, the lender reported 8.26 per cent growth in net profit at Rs 1,440 crore. The lender ended FY22 with a 80 per cent jump in profit after tax at Rs 5,232 crore. Its core net interest income (NII) grew 25.29 per cent at Rs 6,769 crore, on the back of 9.60 per cent growth in advances and the net interest margin widening by 0.38 per cent to 2.75 per cent.
Chief Executive and Managing Director Rajkiran Rai G told reporters that the cost of deposits came down by up to 0.70 per cent during the quarter, which helped restrict the interest expenses growth to 3.30 per cent, and benefitted in widening the NII number.
The other income slid by 25.10 per cent to Rs 3,243 crore due to reverses on the treasury operations amid the rising interest rate environment. Rai said the bank booked a gain of Rs 627 crore through a stake sale in India First Life Insurance in March, but the same was utilized to increase the provisions to cover for loan reverses, and added that the provision coverage ratio has now climbed to over 83 per cent.