Union Bank's Q3 PAT More Than Doubles To <span Class='webrupee'>₹</span>2,245 Cr; Gross NPA Drops Sharply

Net interest income (NII), which is the difference between interest earned and interest expended, came in at ₹8,628 crore in Q3FY23, increasing by 20.26% from ₹7,174 crore in the Q3 of the previous fiscal. The lender's NII was at ₹8,305 crore in the preceding quarter.

Net interest margin (NIM) expanded in Q3FY23 to 3.21% compared to 3% in Q3FY22 and 3.15% in Q2FY23.

In Q3FY23, Union Bank's gross NPA dropped sharply by 369 bps YoY and 52 bps QoQ to 7.93%. The gross NPA was at 11.67 % in Q3FY22 and 8.45% in Q2FY23. Net NPA, meanwhile, plunged by 195 bps YoY and 50 bps QoQ to 2.14%. The provision coverage ratio (PCR) stood at 88.50% in Q3 of FY23.

The bank's total business increased by 16.31% YoY with gross advances climbing by 20.09% YoY and total deposits with a growth of 13.61% YoY. CASA deposits rose by 8.43% YoY.

In regards to credit in the Retail, Agri, and MSME (RAM) segment, the bank posted a growth of 17.76% YoY in the business. The growth was at 16.55% in Retail, 17.56% in Agriculture and 19.55% in MSME advances YoY basis. RAM advances as a percentage of domestic advances stood at 54.72%.

Notably, under financial inclusion schemes launched by the government, the bank made 5.54 lakh new enrolments for the quarter ending December 31, 2022, in Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). Also, the bank recorded 21.32 lakhs of new enrolments in Pradhan Mantri Suraksha Bima Yojana (PMSBY).

Further, the bank opened 2.86 crore accounts under Pradhan Mantri Jan Dhan Yojana (PMJDY) with a balance of ₹8,162 crore as of December 31, 2022 --- which is an increase of 20.17% in account opening and 16% in balance terms year-on-year.

Also, the bank carried 3.57 lakh new enrolments in Atal Pension Yojana (APY) during the third quarter of FY23.