Union Bank of India sees 3-fold jump in net profit

Union Bank of India on Tuesday reported a nearly three-fold jump in its standalone net profit to Rs 1,526.12 crore for the September 2021 quarter. as compared to a net profit of Rs 516.62 crore in the corresponding quarter of the previous financial year.

On a consolidated basis, the bank reported a net profit of Rs 1,510.68 crore in July-September 2021, a jump of 183 per cent from Rs 533.87 crore in the year-ago quarter.

Its total income during July-September 2021 rose to Rs 20,683.95 crore as compared with Rs 20,182.62 crore in the year-ago period .Its consolidated total income rose to Rs 21,621.87 crore, from Rs 20,910.91 crore a year ago.

Provisionings for bad loans and contingencies fell to Rs 3,723.76 crore, against Rs 4,242.45 crore a year ago.

The bank’s asset quality improved with the gross non-performing assets falling to 12.64 per cent of the gross advances by the end of September 2021, from 14.71 per cent by the end of September 2020.

The gross non-performing assets (NPAs) are Rs 80,211.73 crore, down from Rs 95,796.90 crore.
& net NPAs increased marginallt to 4.61 per cent (Rs 26,786.42 crore), as compared to 4.13 per cent (Rs 23,894.35 crore) a year ago.

Editorial Comments : Shares of Union Bank of India on Tuesday closed at Rs 49.40 apiece on the BSE, up 5.89 per cent from the previous close. The scrip has book value of Rs. 89.52 and is currently available at PE multiple of 9.25 as compared to its last 12 months EPS of Rs. 5.33 The scrip is expected to show steady rise in the coming days.