Union Bank Of India announces Q1 FY2022 Results

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Mumbai : Union Bank of India – a leading public sector bank of the country – reported 255% increase in its net profit to Rs 1,181 crore for the first quarter ended June 30, 2021 as compared to Rs 333 crore recorded during the quarter ended June 30, 2020. The robust growth in net profit is due to healthy growth in net interest income and other income. The operating profit grew by 31.5% on Y-o-Y to Rs 5,303 crore for the quarter.

Net Interest Income of Bank grew by 9.53% on YoY to Rs 7,013 crore during Q1FY22.

“Rajkiran Rai G,MD & CEO Union Bank of India said, “It was a Covid disrupted quarter with second wave impacting life and livelihood. Banking industry continued to anchor relief efforts through enhanced liquidity and credit measures. Encouragingly high frequency data signaled revival in activity as mirrored in googled mobility indicators, power consumption, rail freight and UPI transactions improving sequentially. With rise in vaccination, it augers well with business opportunities going forward.”

“We believe our operating profit will be sufficient for any provision requirement. Going forward the capital raising will only be for the growth purposes.”

Bank continues to demonstrate a strong liability franchise – The CASA deposits have increased by 11.23% YoY. The Bank’s total deposits base is at Rs.9,08,528 Crores as at the end of Q1FY22. CASA ratio improved to 36.39% from 33.30% on YoY basis. Credit in Retail, Agri and MSME (RAM) segments grown by 8.92% on YoY basis – Bank registered 10.61% growth in Retail, 12.70% growth in Agriculture and 3.33% growth in MSME advances on YoY basis. RAM advances as % of Domestic Advances improved by 451 bps on YoY basis to 56.08%. Reduction in NPA – Gross NPA percentage reduced by 135 bps on YoY basis to 13.60% and Net NPA percentage reduced by 28 bps on YoY basis to 4.69% as on 30.06.2021. Improved capital ratios – CRAR improved from 11.62% as on 30.06.2020 to 13.32% as on 30.06.2021.

-Odisha Age