Union Bank net profit up 18% on lower provisions
It expects a fall in NIMs to 2.8-3 percent, she said, adding that the targets will be reviewed midway through the year.
NEW DELHI: State-owned Union Bank of India on Saturday reported an 18.36% increase in its consolidated net profit for the March quarter to Rs 3,328 crore, helped by lower provisions.
For the financial year 2023-24, the lender reported a consolidated net profit of Rs 13,797 crore against Rs 8,512 crore in the year-ago period. In the quarter under review, its standalone net profit rose to Rs 3,311 crore from Rs 2,782 crore a year ago.
The core net interest income grew 14.38% to Rs 9,437 crore on an 11.7% growth in advances and widening of net interest margin to 3.10% from 2.97% in the year-ago period.
It expects a fall in NIMs to 2.8-3 per cent, she said, adding that the targets will be reviewed midway through the year. The non-interest income declined by over 10% to Rs 4,707 crore, primarily due to halving of recoveries from written off accounts.
For FY25, the bank is targeting the overall recoveries to come at Rs 16,000 crore against over Rs 18,000 crore in FY24. The overall provisions declined to Rs 3,222 crore from Rs 4,041 crore in the year-ago period. The fresh slippages rose to Rs 3,202 crore from the Rs 2,687 crore a year ago.
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