Union Bank of India on Friday reported a 90% year-on-year rise in net profit at Rs 3,511 crore for the second quarter of the current financial year, supported by a rise in interest income.
The bank surpassed the estimates as Bloomberg analysts expected the lender to post Rs 3,139 crore net profit in the second quarter.
The public sector bank had posted a net profit of Rs 1,848 crore in the second quarter of the previous financial year.
Net interest income, the difference between interest earned and paid, rose 10% to Rs 9,126 crore in the second quarter of current fiscal from Rs 8,305 crore in the same quarter of the previous fiscal, said the bank in a statement.
The non-interest income increased by 13% to Rs 3,695 crore in the second quarter of the current fiscal from Rs 3,276 crore in the same quarter of the previous fiscal.
The net interest margin of the bank expanded to 3.18% during the second quarter compared to 3.15% in the same quarter the previous year and 3.13% in the first quarter of the current financial year.
The bank reported an improvement in asset quality during the second quarter. Its gross NPA declined by 207 bps year-on-year to 6.38% and net NPA reduced by 134 bps on a basis to 1.30% as of September 30 this year.
In absolute terms, gross NPA stood at Rs 54,012 crore, down 17% year-on-year, and net NPA stood at Rs 10,421 crore as of September 30 this year, down 45%.
Total advances registered a growth of 9.5% year-on-year and stood at Rs 8.47 trillion as of September 30 this year. The current account and savings account (CASA) ratio was 34.66% in the second quarter of current fiscal as against 35.64 in the same quarter of previous fiscal. The CASA ratio was 34.60 in the first quarter of current financial year.
Deposits of the bank grew by 9% year-on-year and stood at Rs 11.37 trillion as on September 30 this year.