 "Union Bank of India becomes the first Public Sector Bank to join the Account Aggregator Ecosystem")
Union Bank of India on Tuesday reported a 32 per cent rise in standalone net profit to Rs 1,558.46 crore for the quarter ended June 2022, helped by a fall in bad loans.
Its core interest income also rose at a healthy rate.
The bank had posted a standalone net profit of Rs 1,180.98 crore in the year-ago quarter.
Its total income during the April-June period rose to Rs 20,991.09 crore against Rs 19,913.64 in the same quarter of 2021-22, Union Bank of India said in a regulatory filing.
The core income generated from interest earned increased by 6.1 per cent to Rs 18,174.24 crore in Q1 FY23 from Rs 17,134.23 crore in Q1 FYY22, it added.
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However, the total expenditure (excluding provisions and contingencies) of the bank rose for the quarter to Rs 15,543.53 crore compared to Rs 14,732.29 crore.
The lender improved on its bad assets as the gross non-performing assets (NAPs or bad loans) were trimmed to 10.22 per cent of the gross advances by the end of June 2022 from 13.60 per cent a year ago.
In value terms, the gross NPAs fell to Rs 74,500 crore at the end of Q1 FY23 from Rs 87,762.19 crore.
Net NPAs too were reduced to 3.31 per cent (Rs 22,391.95 crore) from 4.69 per cent (Rs 27,437.45 crore).
The fall in bad loans proportion helped the lender to park less money towards bad loan provisions and contingencies for the quarter at Rs 3,281.14 crore against Rs 3,402.35 crore.
Shares of Union Bank of India traded at Rs 37.85 apiece on BSE, down by 0.26 per cent from the previous close.
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