Union Bank announces financial results for Quarter ending December 31, 2023

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Mumbai: In a remarkable financial performance during the third quarter of fiscal year 2023-24, Union Bank of India has demonstrated robust growth across various key indicators, cementing its position as a formidable player in the banking sector. Here are the key highlights:
 
Strong Financial Performance:
  • Union Bank of India reported a significant surge in Net Profit, recording a remarkable 60.00% YoY increase during Q3FY24.
  • The bank's Net Interest Income also witnessed substantial growth, with an impressive 6.26% YoY increase during the same period.

Strong Liability Franchise:
  • The bank continued to showcase a robust liability franchise, marked by a substantial 5.62% YoY increase in CASA (Current Account and Savings Account) deposits.
  • As of December 31, 2023, Union Bank of India boasts a total deposit base of Rs. 11,72,455 Crores, underscoring the trust and confidence of its customers.

Business Growth Gaining Momentum:
  • Total Business of the bank surged by 10.67% YoY, driven by an 11.44% YoY increase in Gross Advances and a commendable 10.09% YoY growth in Total Deposits.
  • The bank now commands a total business volume of Rs. 20,68,429 Crores as of December 31, 2023.

Growth in RAM Segments:
  • Union Bank of India experienced substantial growth in the Retail, Agriculture, and MSME (RAM) segments, posting a robust 13.85% YoY increase.
  • Within the RAM segment, impressive growth figures include 12.60% in Retail, 17.88% in Agriculture, and 10.51% in MSME advances on a YoY basis. RAM advances now constitute 56.28% of Domestic Advances.

Reduction in NPA:
  • The bank successfully reduced Non-Performing Assets (NPA) with Gross NPA (%) declining by 310 basis points (bps) YoY to 4.83% and Net NPA (%) decreasing by 106 bps YoY to 1.08% as of December 31, 2023.

Strong Capital Ratios:
  • Union Bank of India exhibited robust capital ratios, with the Capital to Risk (Weighted) Assets Ratio (CRAR) improving from 14.45% as of December 31, 2022, to an impressive 15.03% as of December 31, 2023.
  • The Common Equity Tier 1 (CET1) ratio also demonstrated positive growth, reaching 11.71% as of December 31, 2023, compared to 10.71% as of December 31, 2022.

Improved Returns:
  • The bank reported enhanced returns with Return on Assets (ROA) and Return on Equity (ROE) reaching 1.07% and 17.25%, respectively, during Q3FY24.
 
Union Bank of India's stellar performance in Q3FY24 reflects its commitment to financial excellence, prudent management, and strategic growth. The bank remains poised for continued success and contributions to India's economic landscape in the upcoming fiscal quarters.

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