A slew of companies has released their Q3 results in the new year. State-owned Union Bank of India also made its third-quarter results public on Monday, 7 February 2022. Therefore, on that note, let’s take a closer look at the details of the Q3 FY 2022 results of Union Bank of India. Read on!
Key Highlights of the Q3 Results of Union Bank
This State-owned bank’s net profits rose to Rs. 1,085 crores for Q3, which is a rise of 49.3% year-on-year. Thus, this increase in yields was due to the following factors:
Steep dip in provisions and contingencies
Improvement in interest margins
Moreover, for the third quarter of Financial Year 2021, the net profit was Rs. 726 crores. Yet profit declined from the second quarter of Financial Year 2021. The profit for the quarter ending in September was Rs. 1,526 crores.
For Union Bank of India, there was bad news on the entire income front for the October-December quarter. Income declined to Rs. 19,453.74 crores from a high in the corresponding quarter of the previous year. The Q3 total income of the last financial year was Rs. 20,102.84 crores.
This bank’s non-performing assets (NPA) dropped to 11.62% of gross advances, compared with the 13.49% of the previous quarter. However, net NPAs increased to 4.09%, a rise from 3.27% of last year’s quarter.
In a statement, the Executive Director of the Union Bank of India said that the rise in profits was mainly due to a fall in provisions and a soar in net interest income.
Moreover, there was a fall in non-interest income because treasury rates have gone up. Hence, in future, it remains to be seen how the performance of this bank will impact investors.
Frequently Asked Questions
At what price did the lender’s stock close on 7 February 2022?
On the Bombay Stock Exchange, the State-owned lender stock finished at 0.83% lower and closed at Rs. 47.6 per share on 7 February 202.
How much did the net interest margins improve?
The net interest margins of Union Bank of India improved by 3% in Q3 FY 2022 from 2.94% in Q3 FY 2021.
By how much did the deposits increase in Union Bank of India?
The deposits in Union Bank of India increased by 6.24% year on year.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.