Union Bank of India announces dividend of ₹3.60 per share, Q4 net profit up 19%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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State-owned Union Bank of India on Friday (May 10) reported a 19% year-on-year (YoY) increase in net profit at ₹3,310.6 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, Union Bank of India posted a net profit of ₹2,782.3 crore, the bank said in a regulatory filing.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 14.4%, coming at ₹9,436.6 crore against ₹8,250.5 crore in the corresponding quarter of FY23.

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The gross non-performing assets (NPAs) stood at 4.76% in the March quarter against 4.83% in the December quarter. Net NPAs came at 1.03% against 1.08% quarter-on-quarter (QoQ).

In monetary terms, gross NPA stood at ₹43,097.7 crore against ₹43,261.9 crore QopQ, whereas net NPA came at ₹8,989.9 crore against ₹9,351.2 crore over the December quarter.

The bank’s domestic deposits have increased by 8.42% year-on-year. Bank now have a total deposit base of ₹12,21,528 crore as of March 31, 2024. Total business of the bank increased by 10.31% year-on-year, wherein gross advances increased by 11.73% year-on-year and total deposits grew by 9.29% year-on-year. The bank has a total business of ₹21,26,412 crore as of March 31, 2024.

Retail, Agri and MSME (RAM) segments of the bank increased by 13.82% year-on-year, where 11.14% growth in Retail, 20.95% growth in Agriculture and 8.58% growth in MSME advances are achieved on a year-on-year basis. RAM advances as a percent of domestic advances stood at 56.90%.

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Capital to Risk-weighted Assets Ratio (CRAR) improved from 16.04% as of March 31, 2023, to 16.97% as of March 31, 2024. CET1 ratio improved to 13.65% as of March 31, 2024, from 12.36% as of March 31, 2023. The bank’s Return on Assets & Return on Equity improved to 1.03% and 15.58% respectively during FY24.

The board of directors has recommended a dividend of ₹3.60 per equity share (36% of the face value of ₹10 per equity share) for the year ended March 31, 2024, subject to requisite approvals.

The results came after the close of the market hours. Shares of Union Bank of India ended at ₹142.05, down by ₹0.050, or 0.035%, on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow