Earnings Review
Union Bank Jan-Mar net profit surges over 50% despite rise in provisions
This story was originally published at 22:32 IST on 8 May 2025
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--Union Bank Jan-Mar net profit INR 49.85 bln
--Analysts saw Union Bank Jan-Mar net profit INR 42.97 bln
--Union Bank Jan-Mar net profit INR 49.85 bln vs INR 33.11 bln year ago
--Union Bank Jan-Mar total income INR 332.54 bln vs INR 310.58 bln year ago
--Union Bank FY25 total income INR 1.275 tln vs INR 1.159 tln year ago
--Union Bank FY25 net profit INR 179.87 bln vs INR 136.48 bln year ago
--Union Bank Jan-Mar provisions INR 15.44 bln vs INR 12.60 bln year ago
--Union Bank Jan-Mar NPA provisions INR 16.76 bln vs INR 14.85 bln year ago
--Union Bank provision coverage ratio at 94.61% as on Mar 31
--Union Bank net NPA ratio 0.63% as on Mar 31 vs 0.82% qtr ago
--Union Bank gross NPA ratio 3.60% as on Mar 31 vs 3.85% qtr ago
--Union Bank Basel III capital adequacy ratio 18.02% as on Mar 31
--Union Bank to pay INR 4.75 per share dividend for FY25
--Union Bank: Made additional provision of INR 5.46 billion as on Mar 31
By Kshipra Petkar
MUMBAI – Despite rise in provisions, Union Bank of India on Thursday reported a net profit of INR 49.85 billion for the March quarter, up 50.6% from the corresponding quarter of the previous year. Sequentially, the net profit rose 8.3%. Analysts had estimated the net profit at INR 42.97 billion. For the financial year ended March, the bank's net profit was INR 179.87 billion compared to INR 136.48 billion the previous year.
The public sector bank's total income for the quarter rose 7.1% on year to INR 332.54 billion. The other income was up 18% on year at INR 55.6 billion. For FY25, the total income was INR 1.28 trillion compared to INR 1.16 trillion a year ago.
Provisions for the March quarter increased sharply by 22.6% on year to INR 15.44 billion. However, on a sequential basis, the provisions fell by over 3%. The asset quality of the bank improved on a sequential basis, with gross non-performing asset ratio at 3.60% as on Mar. 31, lower than 3.85% a quarter ago. The net NPA ratio was 0.63%, down from 0.82% a quarter ago.
The provisions on non-performing assets rose slightly to INR 16.76 billion from INR 14.85 billion reported a year ago. During the year ended Mar. 31, the bank made an additional provision of INR 5.46 billion on standard advances.
Total expenses of the bank increased 4.2% on year to 255.54 billion in the quarter ended March. Sequentially, the expenses were up 7%.
The bank's Basel-III capital adequacy ratio stood at 18.02% as on Mar. 31, with common equity tier-I ratio at 14.98%.
The bank's board has recommended a dividend of INR 4.75 per share for FY25. On Thursday, shares of Union Bank of India closed at INR 115.58 on the National Stock Exchange, down 2.5% from Wednesday. End
Edited by Ashish Shirke
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