Union Bank of India Q4 Result
In Q4, Union Bank of India showed strong financial growth with increased net profit and recommended dividends. Deposits rose, bad loans decreased, and the bank improved its capital strength.
by S Samayanka
Updated May 13, 2024
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Union Bank of India
Union Bank of India, commonly referred to as Union Bank or UBI, is an Indian public sector bank headquartered in Mumbai. It serves as one of the leading financial institutions in the country.
The Union Bank of India was established in 1919 and has a rich legacy spanning over a century. It operates under the ownership of the government of India.
The bank's operations cover various financial services, including loans, deposits, cards, tax payments, and donations. Union Bank of India offers a range of digital banking products and services for personal and business customers.
Customers can access their accounts conveniently through online platforms. The bank has received recognition and awards for its contributions to the banking sector.
Union Bank of India Q4 Results
|
Particulars |
Q4FY23 |
Q3FY24 |
Q4FY24 |
YoY% |
QoQ% |
|
Interest Income |
22,005 |
25,363 |
26,350 |
19.75 |
3.89 |
|
Interest Expenses |
13,754 |
16,195 |
16,913 |
22.97 |
4.43 |
|
Net Interest Income |
8,251 |
9,168 |
9,437 |
14.38 |
2.93 |
|
Non-Interest Income |
5,269 |
3,774 |
4,707 |
-10.66 |
24.72 |
|
NIM % |
2.98 |
3.08 |
3.09 |
11 bps |
1 bps |
|
Operating Profit |
6,823 |
7,278 |
6,533 |
-4.26 |
-10.24 |
|
Total Provisions |
4,041 |
3,688 |
3,222 |
-20.26 |
-12.64 |
|
Profit After Tax |
2,782 |
3,590 |
3,311 |
19.00 |
-7.77 |
Union Bank of India Q4 Results Highlights 2024
In the fourth quarter of the fiscal year 2024, the Union Bank of India posted robust financial results.
Net Profit:
The bank achieved a 19% year-on-year increase in its net profit, reaching ₹3,310.55 crore.
Dividend:
The Board of Directors recommended a dividend of ₹3.60 per equity share (36% of the face value of ₹10 per equity share) for the fiscal year ended March 31, 2024.
Performance Metrics:
Net Interest Income (NII):
The bank’s NII demonstrated growth, expanding by 11.61% on a year-on-year basis during the fiscal year.
Risk Management:
The bank successfully managed loan-loss provisions, which plummeted by 58% to ₹1,485 crore, down from ₹3,567 crore in the corresponding period.
NPAs (Non-Performing Assets):
Gross NPAs declined to 4.76% of gross advances as of March-end 2024, compared to 4.83% as of December-end 2023.
Net NPAs also witnessed a marginal decrease, standing at 1.03% of net advances.
Social Initiatives:
Union Bank of India actively participated in schemes such as the Pradhan Mantri Jan Dhan Yojana (PMJDY), opening 2.95 crore accounts under the PMJDY Scheme with a balance of ₹10,918 crore as of March 31, 2024.
The bank also extended credit facilities to green initiatives, contributing to environmental conservation and renewable energy adoption.
Financial Performance:
The bank's profit went up by 61.84% compared to the previous year, and its interest income increased by 11.61%.
Deposits:
People put 8.42% more money in the bank, totaling Rs. 12,21,528 crore by March 31, 2024.
Business Growth:
The bank's total business increased by 10.31% from the previous year, with loans going up by 11.73% and deposits by 9.29%.
Retail, Agri, and MSME (RAM) Segments:
Loans in these segments increased by 13.82%, with notable growth in retail, agriculture, and MSME areas.
Reduction in Bad Loans:
The bank managed to decrease its bad loans. Gross bad loans dropped to 4.76%, and net bad loans decreased to 1.03%.
Strong Capital:
The bank's financial strength improved, with its capital adequacy ratio increasing to 16.97%.
Returns:
The bank's return on assets (ROA) improved to 1.03%, and its return on equity (ROE) increased to 15.58% during the fiscal year 2024.
Standalone Financial Results for the Quarter 2024
|
Particulars |
Quarter Ended 31.03.2024 |
Year Ended 31.12.2023 |
Year Ended 31.03.2023 |
|
Interest Earned |
|||
|
(a)+(b)+(c)+(d) |
26,35,010 |
25,36,296 |
22,00,454 |
|
(a) Interest/Discount on Advances/Bills |
19,45,135 |
18,37,663 |
15,65,881 |
|
(b) Income on Investments |
5,60,827 |
5,65,913 |
5,35,504 |
|
(c) Interest on Balances with Reserve Bank of India and other Interbank Funds |
1,19,889 |
1,20,905 |
75,002 |
|
(d) Others |
9,159 |
14,207 |
48,464 |
|
Other Income |
4,70,742 |
3,77,430 |
5,26,923 |
|
Total Income (1+2) |
31,05,752 |
29,13,726 |
27,27,377 |
|
Interest Expended |
16,91,347 |
16,19,495 |
13,75,399 |
|
Operating Expenses (a) + (b) |
7,61,112 |
5,66,476 |
6,69,642 |
|
(a) Employee Cost |
4,82,912 |
3,27,947 |
4,14,223 |
|
(b) Other operating expenses |
2,78,200 |
2,38,529 |
2,55,419 |
|
Total Expenditure (3)+(4) |
24,52,459 |
21,85,971 |
20,45,041 |
|
Operating Profit (A-B) |
6,53,293 |
7,27,755 |
6,82,336 |
|
Profit before Provisions & Contingencies (Profit before Tax) |
5,27,338 |
5,52,976 |
3,88,778 |
|
Provisions and Contingencies (Other than Tax) |
1,25,955 |
1,74,779 |
2,93,558 |
|
Profit/(Loss) from Ordinary Activities before Tax (c-D-E) |
3,31,055 |
3,58,991 |
2,78,231 |
|
Tax Expenses |
1,96,283 |
1,93,985 |
1,10,547 |
|
Net Profit/(Loss) from Ordinary activity after tax (F-G) |
3,31,055 |
3,58,991 |
2,78,231 |
|
Net Profit/(Loss) for the period (H-I) |
3,31,055 |
3,58,991 |
2,78,231 |
|
Paid-up Equity Share Capital (F.V. of each share Rs. 10) |
7,63,361 |
7,41,245 |
6,83,475 |
|
Reserves excluding Revaluation Reserves |
83,69,094 |
65,36,704 |
- |
|
Analytical Ratios |
|||
|
Percentage of Shares held by Government of India |
74.76% |
76.99% |
83.49% |
|
Capital Adequacy Ratio (Basel III) |
16.97% |
15.03% |
16.04% |
|
CET 1 Ratio |
13.65% |
11.71% |
12.36% |
|
Additional Tier 1 Ratio |
1.34% |
1.35% |
1.55% |
|
Basic and Diluted Earnings Per Share |
|||
|
Before Extraordinary Items |
₹4.42 |
₹4.84 |
₹4.07 |
|
After Extraordinary Items |
₹4.07 |
||
|
NPA Ratios |
|||
|
Amount of Gross Non-Performing Assets |
₹43,09,773 |
₹43,26,188 |
₹60,98,729 |
|
Amount of Net Non-Performing Assets |
₹8,98,992 |
₹9,35,123 |
₹12,92,744 |
|
% of Gross NPAs |
4.76% |
4.83% |
7.53% |
|
% of Net NPAS |
1.03% |
1.08% |
1.70% |
|
Return on Assets (Annualised) (Average) |
0.97% |
1.07% |
0.88% |
|
Capital Redemption Reserve |
|||
|
Debenture Redemption Reserve |
|||
|
Net Worth |
₹87,60,131 |
₹91,24,364 |
₹63,59,934 |
|
Debt-Equity Ratio (Total Borrowings/ Net Worth) |
0.31 |
0.45 |
0.68 |
|
Total Debts to Total Assets (%) |
1.94% |
2.77% |
3.37% |
|
Operating Margin (%) |
21.03% |
24.98% |
25.02% |
|
Net Profit Margin (%) |
10.66% |
12.32% |
10.20% |
What were the Financial Inclusion Schemes Launched in the Q4 2024?
-
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):
- Government-backed insurance scheme.
- 3.00 lakhs of new enrollments were done by the bank for the quarter ended March 31, 2024.
-
Pradhan Mantri Suraksha Bima Yojana (PMSBY):
- Government-backed accidental insurance scheme.
- 7.83 lakh new enrollments were done by the bank for the quarter ended March 31, 2024.
-
Pradhan Mantri Jan Dhan Yojana (PMJDY):
- An initiative with 2.95 crore accounts opened under the scheme as of March 31, 2024, with a balance of Rs. 10,918 crore.
- This indicates substantial growth compared to the previous year, with 2.80 crore accounts and a balance of Rs. 9,046 crore as of March 31, 2023.
-
Atal Pension Yojana (APY):
- A pension scheme primarily targeted at individuals working in the unorganized sector.
- 2.00 lakh new enrollments were done by the bank for the quarter ended March 31, 2024.
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Union Bank of India Q4 Results - FAQs
1. What is the Union Bank of India?
Union Bank of India is a major public sector bank in India based in Mumbai.
2. When was the Union Bank of India established?
The Union Bank of India was established in 1919.
3. How much did Union Bank of India's deposits increase by in Q4 2024?
Deposits increased by 8.42% to Rs. 12,21,528 crores by March 31, 2024.
4. What was the year-on-year growth in net profit for Union Bank of India in Q4 2024?
Union Bank of India achieved a 19% year-on-year increase in net profit.
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