Union bank of India Financial Results for the Half year ended September 30, 2021

November 3, 2021 Praveen Business Comments Off on Union bank of India Financial Results for the Half year ended September 30, 2021

The Board of Directors of Union Bank of India today approved the accounts of the Bank for the Half year ended September 30, 2021.

 

Key Highlights in Q2FY2022

  1. Strong Financial Performance:

Operating Profit and Net Profit of the Bank improved by 25.66% and 195.42% respectively on YoY basis during Q2FY22. Net interest income of Bank grew by 8.52% on YoY basis during Q2FY22.

 

  1. Bank continues to demonstrate a strong liability franchise:

The CASA deposits have increased by 10.77% YoY. We now have a total deposits base at Rs.9,14,022 Crores as at the end of Q2FY22. CASA ratio improved to 37.16% from 34.61% on YoY basis.

 

  1. Credit in Retail, Agri and MSME (RAM) segments grown by 8.48% on YoY basis:

Bank registered 9.35% growth in Retail, 13.06% growth in Agriculture and 2.76% growth in MSME advances on YoY basis. RAM advances as % of Domestic Advances improved by 574 bps on YoY basis to 58.51%.

 

  1. Reduction in NPA:

Gross NPA (%) reduced by 207 bps on YoY basis to 12.64% as on 30.09.2021.

 

  1. Cost to Income ratio of the Bank reduced by 115 bps on YoY basis:

Cost to Income ratio of the Bank reduced by 115 bps on YoY basis from 44.95% during Q2FY21 to 43.80% during Q2FY22.

 

  1. Improved Capital Ratios:

CRAR improved from 12.38% as on 30.09.2020 to 13.64% as on 30.09.2021. CET1 ratio improved from 8.91% as on 30.09.2020 to 10.16% as on 30.09.2021.

 

Key Summary of Q2FY2022 Results

 

In Rs  Crores Q2FY21 Q1FY22 Q2FY22 Y-o-Y% Q-o-Q% H1FY21 H1FY22 Y-o-Y%
Profit & Loss
Interest Income 17,776 17,134 16,706 -6.02 -2.50 36,205 33,840 -6.53
Interest Expenses 11,483 10,121 9,876 -13.99 -2.41 23,509 19,997 -14.94
Net Interest Income 6,293 7,013 6,829 8.52 -2.63 12,696 13,843 9.03
Non-Interest Income 2,406 2,779 3,978 65.32 43.13 4,444 6,758 52.05
NIM % 2.78 3.08 2.95 17 bps -13 bps 2.78 3.00 22 bps
Operating Profit 4,833 5,181 6,074 25.66 17.23 9,443 11,255 19.19
Total Provisions 4,317 4,000 4,547 5.35 13.67 8,594 8,548 -0.53
Profit After Tax 517 1,181 1,526 195.42 29.28 849 2,707 218.73

In Rs Crores Sep 20 Jun 21 Sep 21 Y-o-Y(%) Q-o-Q(%)
Balance Sheet
Global Advances 6,51,062 6,45,091 6,34,583 -2.53 -1.63
Domestic Advances 6,32,770 6,30,237 6,19,137 -2.15 -1.76
W/w Retail 1,17,231 1,25,445 1,28,190 9.35 2.19
       Agriculture 1,10,467 1,18,825 1,24,897 13.06 5.11
      MSME 1,06,237 1,05,474 1,09,166 2.76 3.50
     RAM advances 3,33,935 3,49,744 3,62,253 8.48 3.58
Deposits 8,86,098 9,08,528 9,14,022 3.15 0.60
W/w CASA 3,06,665 3,30,604 3,39,692 10.77 2.75
      Retail Term Deposits(<2 Crs) 3,79,407 4,01,020 4,34,299 14.47 8.30
CASA Ratio (%) 34.61 36.39 37.16 255 bps 77 bps
GNPA 95,797 87,762 80,211 -16.27 -8.60
NNPA 23,894 27,438 26,785 12.10 -2.37

Ratios (%) Q2FY21 Q1FY22 Q2FY22 Y-o-Y

bps

 Q-o-Q

bps
Asset Quality
GNPA 14.71% 13.60% 12.64% -207 -96
NNPA 4.13% 4.69% 4.61% 48 -8
PCR 83.16% 81.43% 81.77% -139 34
TPCR 75.06% 68.74% 66.61% -845 -213
Credit Cost 2.29% 1.54% 2.31% 2 77
Capital Ratios
CET-1 ratio 8.91% 9.77% 10.16% 125 39
Tier-1 ratio 10.05% 11.09% 11.32% 127 23
CRAR 12.38% 13.32% 13.64% 126 32