NE BUSINESS BUREAU
MUMBAI, MAY 14
State-owned Union Bank of India on Friday reported a standalone net profit of Rs 1,440 crore for the fourth quarter of 2021-22, posting a year-on-year increase of around 8 percent.
The bank’s total income rose to Rs 20,417.44 crore in the quarter ended March 2022 as compared to Rs 19,804.91 crore in the corresponding period of the previous year.
The bank’s Board of Directors on Friday recommended a dividend of Rs 1.90 per equity share (19 percent) for the year ended March 31, 2022 subject to requisite approvals, Union Bank of India said in a virtual press conference.
The bank’s gross NPA declined by 263 basis points to 11.11 percent and Net NPA reduced by 94 basis points to 3.68 per cent as on March 31, 2022.
Speaking with media, Chief Executive and Managing Director Rajkiran Rai G said, that the cost of deposits came down by up to 0.70 percent during the quarter, which helped restrict the interest expenses growth to 3.30 per cent, and benefitted in widening the NII number. The other income slid by 25.10 per cent to Rs 3,243 crore due to reverses on the treasury operations amid the rising interest rate environment. Rai said the bank booked a gain of Rs 627 crore through a stake sale in India First Life Insurance in March, but the same was utilized to increase the provisions to cover for loan reverses, and added that the provision coverage ratio has now climbed to over 83 percent.
Key Summary of Results
| In RsCrores | Q4FY21 | Q3FY22 | Q4FY22 | YoY% | QoQ% | FY21 | FY22 | YoY% |
| Profit & Loss | ||||||||
| Interest Income | 15,475 | 16,930 | 17,174 | 10.98 | 1.45 | 68,767 | 67,944 | -1.20 |
| Interest Expenses | 10,072 | 9,755 | 10,405 | 3.30 | 6.66 | 44,079 | 40,157 | -8.90 |
| Net Interest Income | 5,403 | 7,174 | 6,769 | 25.29 | -5.65 | 24,688 | 27,786 | 12.55 |
| Non-Interest Income | 4,330 | 2,524 | 3,243 | -25.10 | 28.48 | 11,744 | 12,525 | 6.64 |
| NIM % | 2.38 | 3.00 | 2.75 | 37 bps | -25 bps | 2.71 | 2.94 | 23 bps |
| Operating Profit | 4,959 | 5,098 | 5,520 | 11.32 | 8.28 | 19,667 | 21,873 | 11.22 |
| Total Provisions | 3,629 | 4,013 | 4,081 | 12.44 | 1.69 | 16,761 | 16,641 | -0.72 |
| Profit After Tax | 1,330 | 1,085 | 1,440 | 8.26 | 32.63 | 2,906 | 5,232 | 80.05 |
| In RsCrores | Mar 21 | Dec 21 | Mar 22 | YoY% | QoQ% |
| Balance Sheet | |||||
| Global Advances | 6,53,684 | 6,69,531 | 7,16,408 | 9.60 | 7.00 |
| Domestic Advances | 6,37,672 | 6,53,709 | 6,99,269 | 9.66 | 6.97 |
| W/w Retail | 1,25,427 | 1,32,164 | 1,36,273 | 8.65 | 3.11 |
| Agriculture | 1,20,124 | 1,28,152 | 1,33,092 | 10.80 | 3.85 |
| MSME | 1,05,908 | 1,11,874 | 1,14,975 | 8.56 | 2.77 |
| RAM advances | 3,51,459 | 3,72,190 | 3,84,340 | 9.36 | 3.26 |
| Deposits | 9,23,805 | 9,37,455 | 10,32,392 | 11.75 | 10.13 |
| W/w CASA | 3,35,592 | 3,46,754 | 3,77,193 | 12.40 | 8.78 |
| Retail Term Deposits(<2 Crs) | 3,93,472 | 4,37,528 | 4,43,752 | 12.78 | 1.42 |
| CASA Ratio (%) | 36.33 | 36.99 | 36.54 | 21 bps | -45 bps |
| GNPA | 89,788 | 77,787 | 79,587 | -11.36 | 2.32 |
| NNPA | 27,281 | 25,258 | 24303 | -10.92 | -3.78 |
