by Suman Gupta
The Board of Directors of Union Bank of India today approved the accounts of the Bank for the Quarter ended September 30, 2023.
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Key Highlights in Q2FY24 1. Strong Financial Performance: Net Profit of the Bank increased by 90.00% on YoY basis during Q2FY24. Net interest income of Bank grew by 9.89% on YoY basis during Q2FY24. 2. Bank continues to demonstrate a strong Liability franchise: The CASA deposits have increased by 4.45% YoY. Bank now have a total deposits base of Rs.11,37,628 Crores as on September 30, 2023. 3. Business Growth gaining momentum: Total Business of the Bank increased by 9.24% YoY, wherein Gross Advances increased by 9.50% YoY & Total Deposit grew by 9.04% YoY. Bank have a total Business of Rs.19,84,842 Crores as on September 30, 2023. 4. Credit in Retail, Agri and MSME (RAM) segments: RAM Segment of the bank increased by 14.62% YoY, where 14.68% growth in Retail, 15.04% growth in Agriculture and 14.03% growth in MSME advances is achieved on YoY basis. RAM advances as a per cent of Domestic Advances stood at 56.92%. 5. Reduction in NPA: Gross NPA (%) reduced by 207 bps on YoY basis to 6.38% and Net NPA (%) reduced by 134 bps on YoY basis to 1.30% as on 30.09.2023. 6. Strong capital ratios: CRAR improved from 14.50% as on 30.09.2022 to 16.69% as on 30.09.2023. CET1 ratio improved to 13.05% as on 30.09.2023 from 10.67% as on 30.09.2022. 7. Improved return: Bank’s Return on Assets & Return on Equity improved to 1.07% and 17.97% respectively during Q2FY24. |
Key Summary of Results
| In Rs Crores | Q2FY23 | Q1FY24 | Q2FY24 | YoY% | QoQ% | H1FY23 | H1FY24 | YoY% |
| Interest Income | 19,682 | 23,478 | 24,587 | 24.92 | 4.72 | 37,856 | 48,065 | 26.97 |
| Interest Expenses | 11,377 | 14,638 | 15,461 | 35.90 | 5.62 | 21,969 | 30,099 | 37.01 |
| Net Interest Income | 8,305 | 8,840 | 9,126 | 9.89 | 3.24 | 15,887 | 17,966 | 13.09 |
| Non-Interest Income | 3,276 | 3,903 | 3,695 | 12.79 | -5.33 | 6,093 | 7,598 | 24.71 |
| NIM % | 3.15 | 3.13 | 3.18 | 3 bps | 5 bps | 3.06 | 3.14 | 8 bps |
| Operating Profit | 6,577 | 7,179 | 7,221 | 9.79 | 0.58 | 12,025 | 14,400 | 19.76 |
| Total Provisions | 4,729 | 3,943 | 3,709 | -21.57 | -5.92 | 8,618 | 7,652 | -11.21 |
| Profit After Tax | 1,848 | 3,236 | 3,511 | 90.00 | 8.50 | 3,406 | 6,748 | 98.11 |
| Rs. (In Crores) | Q2FY23 | Q1FY24 | Q2FY24 | YoY% | QoQ%
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| Balance Sheet | |||||
| Global Advances | 7,73,690 | 8,18,457 | 8,47,214 | 9.50 | 3.51 |
| Domestic Advances | 7,52,469 | 7,93,448 | 8,21,437 | 9.17 | 3.53 |
| W/w Retail | 1,46,715 | 1,62,373 | 1,68,256 | 14.68 | 3.62 |
| Agriculture | 1,43,874 | 1,53,615 | 1,65,506 | 15.04 | 7.74 |
| MSME | 1,17,354 | 1,27,745 | 1,33,822 | 14.03 | 4.76 |
| RAM advances | 4,07,943 | 4,43,733 | 4,67,584 | 14.62 | 5.38 |
| Deposits | 10,43,265 | 11,28,052 | 11,37,628 | 9.04 | 0.85 |
| W/w CASA | 3,71,697 | 3,85,084 | 3,88,229 | 4.45 | 0.82 |
| Retail Term Deposits (<2 Crs) | 4,37,866 | 4,36,386 | 4,43,274 | 1.24 | 1.58 |
| CASA Ratio (%) | 35.64 | 34.60 | 34.66 | -98 bps | 6 bps |
| GNPA | 65,391 | 60,104 | 54,012 | -17.40 | -10.14 |
| NNPA | 19,193 | 12,138 | 10,421 | -45.70 | -14.15 |
| Ratios (%) | Q2FY23 | Q1FY24 | Q2FY24 | YoY
bps |
QoQ
bps |
| Asset Quality | |||||
| GNPA | 8.45 | 7.34 | 6.38 | -207 | -96 |
| NNPA | 2.64 | 1.58 | 1.30 | -134 | -28 |
| PCR | 86.61 | 90.86 | 92.03 | 542 | 117 |
| TPCR | 70.65 | 79.80 | 80.71 | 1006 | 91 |
| Credit Cost | 1.50 | 0.97 | 0.81 | -69 | -16 |
| CET-1 ratio | 10.67 | 12.34 | 13.05 | 238 | 71 |
| Tier-1 ratio | 12.26 | 13.86 | 14.57 | 231 | 71 |
| CRAR | 14.50 | 15.95 | 16.69 | 219 | 74 |
Network:
- 8,521 Branches including foreign branches
- 10,013 ATMs
- 18,018 BC points
- 135 MLPs (MSME Loan Points)
- 159 RLPs (Retail Loan Points)
- 48 ALPs (Agriculture Loan Points)
- 105 MSME First Branches
- 1,685 Gold Loan Points
- 19 LCBs & 40 MCBs
- 9 SAMBs & 29 ARBs
Financial Inclusion schemes:
Financial Inclusion schemes launched by GOI with an aim to eliminate barriers and provide economically priced financial services to the less accessible sections of the society through government-backed schemes like PMJJBY, PMSBY, PMJDY and APY.
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):
This is a Government- backed insurance scheme; where 3.51 lakhs new enrollments were done by the Bank for the quarter ended September 30, 2023.
- Pradhan Mantri Suraksha Bima Yojana (PMSBY):
This is Government- backed accidental insurance scheme; where 28.37 lakhs new enrollments were done by the Bank for the quarter ended September 30, 2023.
- Pradhan Mantri Jan Dhan Yojana (PMJDY):
Our bank is instrumental in opening 2.87 Crores accounts under PMJDY Scheme with balance of Rs. 9,286 Crores as on 30.09.2023. The corresponding figure was 2.82 Crores account with balance of Rs. 7,934 Crores as on 30.09.2022.
- Atal Pension Yojana (APY):
APY is a pension scheme, primarily targeted at the individuals working in unorganized sector, 2.18 lakh new enrollments were done by Bank for the quarter ended September 30, 2023.
- Union Nari Shakti Scheme for Women Entrepreneurs:
Sanctioned 12,812 Applications for Rs.1,376 crores during H1 FY24
- Credit facility towards Green initiatives: –
- Renewable Energy Sector: –Sanctioned Rs. 22,998 crores as on 30.09.2023
- Union Green Miles: –Sanctioned amount Rs. 316 crores as on 30.09.2023
