Union Bank of India shares rise 5% on Q2 earnings, check details

Shares of Union Bank of India rose 5% today after the lender announced its Q2 earnings. The bank reported a net profit of Rs 5,537 crore, rising 30.3% on a year-on-year basis supported by higher net interest income and operating profit.

Net profit in the year ago quarter stood at Rs 4,249 crore a year earlier.

Net interest income (NII) rose 20% to Rs 10,582 crore from Rs 8,813 crore in the year-ago quarter. Operating profit climbed 19% to Rs 8,108 crore from Rs 6,814 crore.

The bank’s net interest margin (NIM) improved by 19 basis points to 2.86%, while asset quality also strengthened during the quarter. Gross non-performing assets (GNPA) declined to 2.42% of total advances, compared with 3.29% in the corresponding period last year. In absolute terms, gross NPAs fell to Rs 27,916.21 crore from Rs 32,085.13 crore a year earlier.

The bank’s total business expanded 12.01% year-on-year (YoY) to Rs 24,75,330 crore at the end of the September quarter. Gross advances registered robust growth of 18.53% YoY, while the global deposits base increased 6.87% to Rs 13,19,455 crore.

The retail, agriculture and MSME (RAM) loan portfolio grew 14.65% YoY, supported by an 11.24% increase in retail lending and a stronger 22.39% expansion in MSME loans.

The stock ended 4.94% higher at Rs 180.50 in the current session. Market cap of the bank rose to Rs 1.37 lakh crore.