Union Bank Q4FY23 PAT up 81% at Rs2,812cr on lower provisioning and 22% growth in NII
Union Bank reported 43.5% growth in total revenues for the March 2023 quarter on consolidated basis at Rs27,764cr. Revenue growth was 12.7% in sequential terms for Q4FY23. For the quarter, the company saw growth in revenues from retail bank and treasury and sharp growth in revenues from corporate banking. However, operating profits from treasury and retail fell sharply, while corporate banking turned around.
Net interest income (NII) for Q4FY23 was up 21.9% you at Rs8,251 crore. For the same period, the net interest margins (NIM) expanded from 2.75% to 2.98%. Non-interest income grew sharply by 62.5% yoy at Rs5,269 crore. For the fourth quarter, the total advances grew by grew over 12% while deposits grew over 8% yoy. CASA ratio stood at 35.62% of the total deposit base. There was a sharp fall in the gross NPAs and the net NPAs on a yoy basis.
Financial highlights for Mar-23 compared yoy and sequentially
| Union Bank | |||||
| Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income | ₹ 27,764 | ₹ 19,354 | 43.45% | ₹ 24,635 | 12.70% |
| Operating Profit | ₹ 6,869 | ₹ 5,555 | 23.66% | ₹ 6,647 | 3.33% |
| Net Profit | ₹ 2,812 | ₹ 1,557 | 80.58% | ₹ 2,264 | 24.21% |
| Diluted EPS | ₹ 4.11 | ₹ 2.30 | ₹ 3.31 | ||
| Operating Margins | 24.74% | 28.70% | 26.98% | ||
| Net Margins | 10.13% | 8.05% | 9.19% | ||
| Gross NPA Ratio | 7.53% | 11.11% | 7.93% | ||
| Net NPA Ratio | 1.70% | 3.68% | 2.14% | ||
| Return on Assets | 0.88% | 0.50% | 0.73% | ||
| Capital Adequacy | 16.04% | 14.52% | 14.45% |
For Q4FY23, the operating profits were up 23.7% yoy while the net profits were up 81% yoy due to the benefits of lower provisions in the quarter. In addition, the credit cost fell from 2.00% to 1.77% on a yoy basis. The total provision coverage ratio (PCR) for Union Bank of India has gone up yoy from 83.61% to 90.34%. However, gross NPAs at 7.53% still remains high in absolute terms.