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.
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.
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.
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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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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