Shares of state-run Union Bank of India Ltd. gained up to 4% on Monday, October 19, in response to its September quarter results, which showed improvement on a year-on-year basis across parameters.
Net Interest Income (NII) or core income of the bank grew by 20.1% from last year to ₹10,583 crore from ₹8,812 crore.
Net profit for the period stood at ₹5,537 crore, indicating a 30.3% growth from the ₹4,249 crore figure it reported during the same quarter last year.
Asset quality for the lender improved slightly on a sequential basis, with gross NPA improving to 2.42% from 2.65% in June, while net NPA improving to 0.42% from 0.47% in the previous quarter.
In absolute terms, Union Bank’s Gross NPA stood at ₹27,916 crore from ₹29,092 crore in June, while Net NPA stood at ₹4,768 crore from ₹5,016 crore in the previous quarter.
Provisions for the quarter saw a drop to ₹700 crore from the ₹979 crore reported during the June quarter, aiding the growth in the bank’s profitability.
Union Bank’s operating profit improved by 19% from last year to ₹8,108 crore from ₹6,814 crore last year.
Shares of Union Bank of India are trading 3.7% higher on Monday at ₹178. The stock has risen 16% so far this year.
The story will be updated with more details.