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The bank’s profit after tax stood at ₹4,985 crore in the fiscal fourth quarter compared with ₹3,311 crore in the same period last year. For FY25, net profit stood at ₹17,987 crore, up nearly 32% year-on-year.
Net interest income–difference between interest paid to depositors and earned on loans-was flat at ₹9,514 crore in the March quarter compared to ₹9,437 crore.
Net interest margin for the quarter stood at 2.87% as against 3.09%. This trend is in line with peer banks where NIM has been under pressure because of elevated cost of deposits, and fall in loan yields following the Reserve Bank of India’s February rate cut.
Non-interest income, which includes treasury gains, rose over 18% YoY, boosting the bottomline. Treasury income stood at ₹1,646 crore in the March quarter compared to ₹783 crore a year ago.
Union Bank of India closed the year with a loan book of ₹9.8 lakh crore, up 8.6%, while deposits grew 7.2% to over ₹13 lakh crore. Both loan and deposit growth were below the guided range of 11-13% and 9-11%, respectively,However, the bank met its target of reducing gross non-performing assets ratio below 4%. Gross and net NPA ratio fell to 3.60% and 0.63%, respectively, as at the end of March.
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https://economictimes.indiatimes.com/markets/stocks/earnings/union-bank-q4-results-net-profit-surges-50-on-strong-treasury-gains/articleshow/121013341.cms
