Union Bank of India's net profit zooms 49% in Q3

Hyderabad: Union Bank of India on Monday reported 49.29 per cent rise in net profit to Rs 1,085 crore for third quarter (Q3) of the financial year 2021-22 against Rs 727 crore in the same quarter previous fiscal. The net interest income of the bank grew by 8.88 per cent to Rs 7,174 crore during Q3FY22 over Rs 6,590 crore in corresponding quarter last year.

The bank continues to demonstrate a strong liability franchise. The current account savings account (CASA) deposits have increased by 11.06 per cent in the review period when compared to a year ago. Currently, it has a total deposits base at Rs 9.37 lakh crore as at the end of Q3FY22. CASA ratio improved by 161 bps to 36.99 per cent from 35.38 per cent on YoY basis.

On the asset quality front, the bank's gross non-performing assets (NPAs) fell to 11.62 per cent of the gross advances in Q3FY22, compared with 13.49 per cent in the same quarter previous fiscal. However, net NPAs increased to 4.09 per cent in Q3FY22, up from 3.27 per cent during a year ago. Provisions and contingencies declined significantly to Rs 2,549.58 crore in Q3FY22, compared with Rs 5,210.50 crore in the corresponding quarter previous year.

In response to significant challenges of Covid-19, the bank has launched various schemes for business entities, retail customers, in order to ease out the stress or for fulfilling the consumption needs. It sanctioned an amount of Rs 328.29 crore under PM SVANidhi, a micro credit facility for street vendors to provide collateral free loan of Rs 10,000 at low interest rate.

Under Pradhan Mantri Awas Yojana (PMAY) affordable housing scheme, the bank has sanctioned an amount of Rs 7,103 crore to 26,198 beneficiaries including women of 19,741. It also sanctioned an amount of Rs 10,562 crore to eligible MSME borrowers in the form of additional working capital term loan under Union Guaranteed Emergency Credit Line (UGECL).