Union Bank of India saw a notable rise in its shares by about 7% today, following a significant jump in its net profit. The increase was recorded after the bank released its financial results, showing a 28.20% increase in net profit.
Growth in Net Profit and Other Income
For the December quarter, the bank reported a net profit of Rs 4603.60 crore, compared to Rs 3589.90 crore in the same quarter last year. The company’s shares opened at Rs 109.40 on BSE and reached a high of Rs 113 during the day.
In addition to net profit, Union Bank’s other income has also grown, with a rise of 17% year-on-year, amounting to Rs 4420 crore.
Total income increased by 5.5% to Rs 13,660 crore. The bank’s net interest income saw a slight growth of 0.8%, reaching Rs 9240.20 crore, up from Rs 9168 crore in the previous year.
Moreover, the bank’s asset quality improved, with the gross non-performing asset ratio reducing to 3.85% from 4.36% in the September quarter.
Stock Market Performance
Over the past year, Union Bank’s share price has struggled, falling by 20%, while the Sensex rose by 7.67%. The bank’s 52-week high is Rs 172.45, and its 52-week low is Rs 100.75.
In addition to the profit increase, the bank’s other income also saw growth. In the December quarter, other income stood at Rs 4420 crore, showing a 17 percent year-on-year rise.
The bank’s total income increased by 5.5 percent, reaching Rs 13,660 crore. Net interest income rose by 0.8 percent to Rs 9240.20 crore, compared to Rs 9168 crore in the same quarter last year.
Improvement in Asset Quality
Union Bank has also shown improvement in its asset quality. The bank’s gross non-performing asset (NPA) ratio is now 3.85 percent, down from 4.36 percent in the September quarter.
