The shares of one of the leading public sector banks in the country jumped 7 percent following a 27.3 percent year on year increase in its net profits to Rs 4,623.03 crore in Q3 FY25.
Price Action
With a market capitalization of Rs 85,000.20 crore, Union Bank of India Limited surged 7 percent in Tuesday’s trading session and made an intraday high of Rs 113 per share compared to its previous closing price of Rs 105.65 per share. The stock reiterated from its day’s high and was trading at Rs 111.35 which is 5.4 percent higher than the previous closing price.
What Happened
Union Bank of India Limited was in focus after the company announced its Q3FY24-25 results. Their net interest income went up by 0.9 percent year on year from Rs 9,285.41 crore to Rs 9,370.18 crore in Q3FY25. On a quarter-on-quarter basis, the interest income increased by 2.2 percent from Rs 9,166.64 crores.
The company’s net profit rose 27.3 percent from Rs 3,610.4 crore to Rs 4,597.17 crore year on year in Q3FY25. On a quarter-on-quarter basis, the profits decreased by 2.6 percent from Rs 4,721.83 crores.
Total expenditure has increased by 7.8 percent from Rs 22,467.09 crore to Rs 24,238.6 crore. Provisions and contingencies fell 8.5 percent year on year from Rs 1,780.5 crore to Rs 1,621.8 crore. Gross NPA dropped from 4.36 percent to 3.85 percent quarter on quarter. Additionally, Net NPA declined from 0.98 percent to 0.82 percent quarter on quarter.
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Segment Revenue
Treasury Operations accounted for 24.84 percent of the total income, while Retail Banking and Corporate Banking contributed 36.15 percent and 35.83 percent, respectively. Other Banking Operations added 1.46 percent, and 0.8 percent was unallocated.
Company Overview
Union Bank of India, 5th largest PSB in the country, is involved in providing a wide range of services, including banking, merchant banking, agency services, government business, insurance, wealth management and mutual funds among others. They have a 9.3 percent share among all Public Sector Banks in the country as of FY 25.
The company has 8,555 Branches & 9,124 ATMs in the country. Notably, almost 30 percent of these branches exist in rural areas, 20 percent in urban areas, 29 percent in semi-urban areas and 21 percent in metro cities. It also has a unique global presence with overseas Branches in Dubai & Sydney, a subsidiary in London and a JV in Malaysia (India International Bank ) as of FY 25.
Written by Shwetha Sairam
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