October 30, 2023
New Delhi, India
Union Bank of India Q2 Results
Union Bank of India (UBI) has made an impressive financial stride in the second quarter of the fiscal year 2023-24, reporting substantial growth in profits and notable improvements in asset quality. The bank’s performance underscores its resilience and strategic focus on enhancing its financial position.
A Staggering 90% Profit Surge
UBI has reported a remarkable surge in net standalone profit, with a staggering 90% increase in the second quarter, reaching Rs 3,511 crore compared to the Rs 1,847.7 crore recorded in the same period the previous year. This impressive profit growth highlights the bank’s efficient strategies and operational excellence, contributing significantly to its profitability.
Enhanced Asset Quality
Union Bank of India showcased a substantial improvement in its asset quality. The bank’s net non-performing assets (NPAs) have reduced to 1.30% in the latest quarter, showing a significant decrease from 2.64% a year ago. This highlights the bank’s robust management of asset quality and prudent risk control measures.
Also Check: Axis Bank Q2 Results: Net Profit Rises 10%
Positive Market Response
Investors have responded positively to the bank’s financial results, with UBI’s shares closing 5.49% higher at Rs 99.95 per share on the Bombay Stock Exchange (BSE). This surge in share price indicates investor confidence in the bank’s growth and financial stability. UBI’s stock has witnessed substantial growth, surging by 22.79% year-to-date and 89.12% over the past year.
Strong Growth in Net Interest Income and Business
Union Bank of India‘s net interest income (NII) experienced a robust growth of 9.89% year-on-year during the second quarter. Additionally, the bank’s total business, encompassing loans and deposits, recorded a 9.24% year-on-year increase. Notably, gross advances, representing the total outstanding loans of the bank, surged by 9.50% year-on-year, while total deposits grew by 9.04% over the same period.
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Strategic Growth Initiatives
UBI made significant advancements in the Retail, Agri, and MSME (RAM) segment, with credit in RAM experiencing a notable 14.62% year-on-year growth. Within this segment, there was a 14.68% growth in Retail, 15.04% growth in Agriculture, and 14.03% growth in MSME advances on a year-on-year basis. The bank also expanded its network outside India, operating 8,521 branches both in India and abroad. Furthermore, it opened 105 MSME first branches to boost credit to local enterprises. To enhance customer accessibility, more than 10,000 ATMs were installed.
Emphasis on Social Welfare Schemes
UBI actively participated in social welfare schemes launched by the central government. The bank enrolled more than 3.51 lakh new beneficiaries under the Pradhan Mantri Jeevan Jyoti Bima Yojana and 28.37 lakh new beneficiaries under the Pradhan Mantri Suraksha Bima Yojana. Additionally, the bank expanded its support for schemes such as the Pradhan Mantri Jan Dhan Yojana, Atal Pension Yojana, and the Union Nari Shakti Scheme for Women Entrepreneurs.
In conclusion, Union Bank of India‘s impressive financial results, featuring a 90% surge in profit and improved asset quality, reflect the bank’s strategic acumen and robust growth. The positive market response and substantial growth in net interest income and business underline UBI’s position as a key player in the Indian banking sector.
Check: Q2 Results
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