Public sector lender Union Bank of India has reported a 254.93 per cent year-on-year growth in standalone net profit for the first quarter of financial year 2021-22, mirroring the trend set by several other PSBs also reporting higher profitability in the current year.
The standalone net profit of the bank, in the April-June quarter, stood at Rs 1,181 crore up from Rs 332.7 crore in corresponding period last fiscal. The higher profit has been achieved with a growth in other non-interest income and despite increased coverage provided for non-performing assets (NPAs).
While net interest income of the bank grew by 9.53 per cent year-on-year to Rs 7,013.4 crore in Q1FY22, non-interest income in the quarter grew by a staggering 98.35 per cent to Rs 2,901 crore.
On the asset quality front, gross non-performing assets, as a percentage of gross advances, reduced by 135 bps on YoY basis to 13.60 per cent and net NPA percentage reduced by 28 bps on YoY basis to 4.69 per cent as on June 30. Credit cost reduced by 135 bps QoQ for Q1FY22.