Government-owned Union Bank of India recorded strong Q3 earnings with profitability more than doubling year-on-year. The bank garnered a robust growth of 106.81% in net profit to ₹2,245 crore in Q3FY23 compared to a profit of ₹1,085 crore. The PAT climbed by 21.48% from ₹1,848 crore in June 2022 quarter. Union Bank’s deposits and advances gained momentum in Q3 with double-digit growth YoY. Also, asset quality improved significantly in the quarter.
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.
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.