Union Bank of India net zooms 254% on higher NII, other income

The lender has strengthened its equilibrium expanse by expanding proviso sum ratio (PCR) by 156 bps to 81.43% successful June 2021. Cost to income ratio of the slope improved by 320 bps y-o-y to 46.51% during Q1FY22.

Public assemblage lender Union Bank of India connected Thursday reported a 254% year-on-year (y-o-y) leap successful its nett net to Rs 1,181 crore for the 4th ended June 2021 owed to a emergence successful halfway income and different income.

The bank’s nett involvement income (NII) accrued 10% y-o-y and 30% quarter-on-quarter (q-o-q) to Rs 7,013 crore. Similarly, different income of the slope surged 98% y-o-y to Rs 2,901 crore, which included Rs 256 crore betterment from Kingfisher Airlines during the quarter. The emergence successful halfway income and non-interest income boosted operating nett of the lender by 31% y-o-y to Rs 5,303 crore.

The beardown show was contempt an 11% y-o-y and 7% q-o-q summation successful provisioning to Rs 4,122 crore. Net involvement margins (NIM) besides improved 30 ground points (bps) y-o-y and 70 bps sequentially to 3.08%. Rajkiran Rai G, MD and CEO of the bank, said that the postulation ratio of the slope had dipped to 82% during the period of April 2021 owed to Covid-19 restrictions. “However, the postulation ratio has present improved to 92%,” helium said.

Non-interest income of the lender surged owed to higher fee-based income and treasury income, among others. Core interest based income accrued 41% y-o-y to Rs 1,064 crore. Similarly, treasury income surged 92% y-o-y to Rs 1,214 crore.

The plus prime of the lender remained a mixed container during the June quarter. Gross non-performing assets (NPAs) ratio of the lender improved 14 bps to 13.6%, compared to gross NPAs of 13.74% successful the erstwhile quarter. However, nett NPAs ratio accrued 7 bps to 4.69% from 4.62% successful the March quarter.

The lender has strengthened its equilibrium expanse by expanding proviso sum ratio (PCR) by 156 bps to 81.43% successful June 2021. Cost to income ratio of the slope improved by 320 bps y-o-y to 46.51% during Q1FY22.

Advances remained level astatine Rs 6.55 lakh crore. “With the anticipation of normalcy by September 2021, the slope expects a recognition maturation of 8-10% by March, 2022,” Rai said.

Deposits grew 2% y-o-y to Rs 9.08 lakh crore, but declined 2% sequentially. The stock of existent relationship savings relationship (CASA) successful full deposits improved 309 bps y-o-y to 36.39%, compared to 33.3% successful June, 2020. The superior adequacy ratio (CAR) improved 170 bps y-o-y to 13.32% during the June quarter, compared to 11.62% successful the year-ago period.