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Informist, Thursday, Oct. 30, 2025

 

--Union Bank MD: Deliberately cutting down on bulk deposits to protect NIM 

--CONTEXT: Comments from Union Bk of India mgmt in post earnings press meet 

--Union Bank MD: Aim for 8-10% growth in advances in Oct-Mar 

--Union Bank: Q2 net profit down on yr primarily due to fall in recoveries 

 

MUMBAI – Union Bank of India aims to improve its loan growth to 8-10% on year in the second half of the current financial year, its Managing Director Asheesh Pandey said Thursday. The state-owned bank's gross advances grew 5% on year to INR 9.75 tln as on Sept 30. 

 

"... the bank has focused on sustainable growth. So that is the key point. The balance is maintained from the top-line expansion and bottom-line strength. So I think these are the two key points, which the bank is looking at... You can see the growth of around 8% to 10% (in advances) in the second half of the year," Pandey said, addressing a post-earnings press conference here on Thursday. 

 

Talking about deposits, which grew a meagre 1.9% on year, Pandey said the bank has made a conscious effort to cut down on bulk deposits, as they are expensive. "So while it's showing a year-on-year growth of about 1.9% and kind of flattish quarter-on-quarter, because we consciously brought down our bulk deposits, and therefore if we had excluded this, our deposits would have been about 12% up year-on-year, and in terms of quarter-on-quarter, it would have been about 3%," Pandey said. 

 

Recoveries from written-off accounts, which fell almost 36% on year to INR 9.13 billion, were the primary reason why the bank reported a fall in its bottom line, Pandey said. "As far as recovery from our written-off accounts is concerned, it is down about 500 crores (INR 5 billion), so that is contributing to the decline in net profit," he said. 

 

The bank's net profit fell 10% on year to INR 42.49 billion in Jul-Sept. Sequentially, the net profit rose 3%. Thursday, the bank's shares ended 2.6% lower at INR 142.32 on the National Stock Exchange.  End

 

Reported by Kabir Sharma

Edited by Saji George Titus

 

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