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Union Bank Share Price Rose ~7%: Posted Improvement in Asset Quality During Q3FY25

Written by: Sachin GuptaUpdated on: Jan 29, 2025, 4:32 PM IST
Union Bank shares are on investors’ radar after the release of Q3FY25 results and reported an increase in net profit and an improvement in asset quality.
Union Bank Share Price Rose ~7%: Posted Improvement in Asset Quality During Q3FY25
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On January 28, 2025, Union Bank shares rose around 7%, reaching a day high of 113.14 at 11:15 AM, after opening at 109.11. The gain in Union Bank share price came after the release of Q3FY25 results, wherein, the bank recorded an increase in net profit for the December quarter and an improvement in asset quality.

Union Bank Q3FY25 Earning Overview

The bank reported a 28.2% year-on-year rise in its net profit, reaching ₹4,603.6 crore for Q3FY25, up from ₹3,589.90 crore in the same quarter last year. The profit growth was fueled by lower provisions and better-than-expected other income. Other income rose 17% year-on-year to ₹4,420 crore, helping lift total income by 5.5% to ₹13,660 crore.

Net interest income (NII), which is the difference between a bank’s income from lending and the interest it pays on deposits, grew 0.8% to ₹9,240.2 crore, compared to ₹9,168 crore in the third quarter of FY24.

Improvement in Asset Quality

Asset quality also showed improvement, with the gross non-performing asset (GNPA) ratio decreasing to 3.85% in the December quarter, down from 4.36% in the September quarter. The net NPA ratio also fell to 0.82% from 0.98% on a sequential basis.

RBI Announced Liquidity Infusion

The another reason, Union Bank share spiked was the announcement by the Reserve Bank of India for bond purchase via open market operations worth ₹60,000 crore, a 56-day variable rate repo auction for an amount of ₹50,000 crore and a dollar-rupee buy-sell swap auction of $5 billion for 6 months.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jan 28, 2025, 11:38 AM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

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