Union Bank Posted 49.29% YoY Net Profit Growth and Over 11% Reduction in NPAs

1. Strong Financial Performance:

Net Profit of the Bank improved by 49.29% on YoY basis during Q3FY22. Net w2interest income of Bank grew by 8.88% on YoY basis during Q3FY22.

 2.    Bank continues to demonstrate a strong liability franchise

The CASA deposits have increased by 11.06% YoY. Bank now have a total deposits base at Rs.9,37,455 Crores as at the end of Q3FY22. CASA ratio improved by 161 bps to 36.99% from 35.38% on YoY basis.

3.    Business growth gaining momentum

The Advances have increased by 5.51% and 2.69% on QoQ and YoY basis respectively, while Deposits have increased by 2.56% and 6.24% on QoQ and YoY basis respectively. Bank now have a total Business at Rs.16,06,986 Crores as on Dec 31, 2021.

4.    Credit in Retail, Agri and MSME (RAM) segments grown by 9.17% on YoY basis

Bank registered 9.78% growth in Retail, 11.08% growth in Agriculture and 6.38% growth in MSME advances on YoY basis. RAM advances as a per cent of Domestic Advances improved by 327 bps on YoY basis to 56.94%.

5.    Reduction in NPA:

Gross NPA (%) reduced by 102 bps on QoQ basis to 11.62% and Net NPA (%) reduced by 52 bps on QoQ basis to 4.09% as on 31.12.2021. Credit Cost reduced by 91 bps QoQ for Q3FY22.

6.    Improved capital ratios

CRAR improved from 12.98% as on 31.12.2020 to 13.92% as on 31.12.2021. CET1 ratio improved to 10.18% as on 31.12.2021 from 9.22% as on 31.12.2020.

Key Summary of Q3FY2022 Results