Earnings Outlook
Union Bank Jan-Mar net profit seen rising 30% YoY
This story was originally published at 22:45 IST on 6 May 2025
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By Kshipra Petkar
MUMBAI – Union Bank of India's net profit is expected to surge 30% on year to INR 42.97 billion for the quarter ended March, according to the average of estimates by six brokerages. As per the estimates, the net profit is in the range of INR 34.02 billion–INR 46.20 billion. Sequentially, the net profit is seen falling over 6%.
Prabhudas Lilladher, which has the lowest estimate for the net profit, expects the provisions to rise sharply in the quarter ended March. In the previous quarter, the provisions fell 8.5% on year to 15.99 billion. On other hand, Emkay Global Financial Services in its pre-earnings report said that healthy treasury gains along with better recoveries are expected to support profitability of the bank.
Net interest income is seen falling marginally on year to INR 93.37 billion in the quarter ended March. In the previous quarter, the net interest income stood at INR 92.40 billion. The net interest margin is expected to either be stable or fall on quarter from 2.94% due to a fall in yield on advances.
According to the provisional figures released by the bank, the global advances wre up 8.6% on year and the global deposits grew 7.2% on year. The total business of the bank was up 7.8% on year to INR 22.93 trillion. The figures are lower than the bank's guidance of 11-13% for advances growth and 9-11% for deposit growth.
Several brokerages expect the asset quality of the bank to improve. Prabhudas Lilladher expects the gross non-performing asset ratio to improve by 30 basis points on quarter. As of Dec. 31, the gross NPA ratio stood at 3.85% and net NPA ratio is at 0.82%. On a sequential basis, the slippages are expected to remain flat. In the previous quarter, the bank's slippages were INR 95.06 billion. Any commentary on asset quality, business growth will be monitored.
The bank will release its March quarter earnings on Thursday. On the National Stock Exchange, shares of the bank closed 6.3% lower at INR 118.22 on Tuesday.
Following are the Jan-Mar earnings estimates for Union Bank of India based on reports from six broking firms, in descending order of net profit:
| Brokerage report | Net Interest Income (in INR million) | Net Profit (in INR million) |
| Anand Rathi Share and Stock Brokers | 95,065.00 | 46,202.00 |
| Motilal Oswal Financial Services | 94,541.00 | 45,990.00 |
| Equirus Securities | 93,118.00 | 45,609.00 |
| Emkay Global Financial Services | 95,052.00 | 45,405.00 |
| Kotak Institutional Equities | 89,032.00 | 40,616.00 |
| Prabhudas Lilladher | 93,458.00 | 34,024.00 |
| Average | 93,377.67 | 42,974.33 |
Edited by Akul Nishant Akhoury
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