Union Bank of India Announces Quarterly Financial Results for June 2024

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Mumbai: "Union Bank of India" has announced its financial results for the quarter ending June 30, 2024, showcasing robust growth and strong financial performance across various metrics.

Key Financial Highlights:

1. Net Profit: The bank's net profit increased by 13.68% year-on-year (YoY), reflecting strong earnings growth in Q1FY25.

2. Net Interest Income: The net interest income saw a 6.47% YoY increase, contributing significantly to the bank's profitability.

Liability Franchise and Business Growth:

1. Deposits: Domestic deposits rose by 8.52% YoY, bringing the total deposit base to Rs. 12,24,191 crores as of June 30, 2024.

2. Total Business: The total business of the bank increased by 9.76% YoY, with gross advances growing by 11.46% and total deposits by 8.52%, reaching a total business of Rs. 21,36,405 crores.

Segment Performance:

1. Retail, Agri, and MSME (RAM) Segments: The RAM segment grew by 14.53% YoY, driven by 12.28% growth in retail, 23.00% in agriculture, and 7.21% in MSME advances. RAM advances constituted 57.83% of domestic advances.

2. NPA Reduction: The bank achieved a significant reduction in non-performing assets (NPA), with gross NPA (%) reducing by 280 basis points (bps) YoY to 4.54% and net NPA (%) by 68 bps to 0.90%.

Capital Ratios and Returns:

1. CRAR: The Capital to Risk (Weighted) Assets Ratio (CRAR) improved to 17.02% from 15.95% YoY, and the Common Equity Tier 1 (CET1) ratio increased to 13.81% from 12.34% YoY.

2. Returns: Return on Assets (RoA) and Return on Equity (RoE) stood at 1.06% and 15.70%, respectively.

Network and Infrastructure:

Union Bank of India continues to expand its network with:

  1. 8,473 branches, including foreign branches
  2. 9,342 ATMs
  3. 20,646 Business Correspondent (BC) points
  4. Multiple specialized loan points and branches for retail, MSME, and agricultural loans


Financial Inclusion Initiatives:

The bank has been actively participating in government-backed financial inclusion schemes:

  1. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): 1.29 lakh new enrollments in Q1FY25.
  2. Pradhan Mantri Suraksha Bima Yojana (PMSBY): 3.57 lakh new enrollments in Q1FY25.
  3. Pradhan Mantri Jan Dhan Yojana (PMJDY): Opened 2.99 crore accounts with a balance of Rs. 10,669 crores as of June 30, 2024.
  4. Atal Pension Yojana (APY): 1.86 lakh new enrollments in Q1FY25.


Green Initiatives:

  1. Renewable Energy Sector: Sanctioned Rs. 26,853 crores as of June 30, 2024.
  2. Union Green Miles: Sanctioned Rs. 525 crores as of June 30, 2024.


Empowering Women:
Union Nari Shakti Scheme for Women Entrepreneurs: Sanctioned 3,652 applications amounting to Rs. 417 crores in Q1FY25.

Union Bank of India's consistent performance and dedication to financial inclusion, coupled with its innovative initiatives and strong financial metrics, position it as a leading institution in India's banking sector.

 

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