Union Bank climbs after Q1 PAT spurts 48% to Rs 333 cr

Union Bank of India gained 2.30% to Rs 31.15 after net profit jumped 48.3% to Rs 332.74 crore on 101.2% spurt in total income to Rs 19,891.26 crore in Q1 June 2020 over Q1 June 2019.

Standalone profit before tax (PBT) soared 30.3% to Rs 478.32 crore in Q1 June 2020 as against Rs 367.07 crore in Q1 June 2019. The Q1 result was declared post trading hours on Friday, 21 August 2020.

The bank's gross non-performing assets (NPAs) stood at Rs 97,189.95 crore as on 30 June 2020 as against Rs 49,085.30 crore as on 31 March 2020 and Rs 48,811.88 crore as on 30 June 2019. The ratio of gross NPAs to gross advances stood at 14.95% as on 30 June 2020 as against 14.15% as on 31 March 2020 and 15.18% as on 30 June 2019. The ratio of net NPAs to net advances stood at 4.97% as on 30 June 2020 as against 5.49% as on 31 March 2020 and 7.23% as on 30 June 2019.

The bank's provisions and contingencies surged 134.03% to Rs 3,555.77 crore in Q1 FY21 over Rs 1,519.34 crore in Q1FY20. Provision Coverage Ratio (PCR) improved to 79.87% as on 30 June 2020 as against 73.38% as on 30 June 2019. As of 30 June 2020, the Government of India held 89.07% stake in the bank.

Union Bank of India's total global deposits advanced 7.3% Y-o-Y to Rs 8,92,542 crore as on June 30, 2020. Current Account-Savings Account (CASA) deposits rose 11% Y-o-Y to Rs 2,97,217 crore as on 30 June 2020. Global gross advances grew 2% Y-o-Y (year-on-year) to Rs 6,50,127 crore as on 30 June 2020.

Operating profit during Q1 FY21 increased by 2.9% to Rs 4,034 crore as compared to Rs 3,918 crore in Q1 FY20. Global Net Interest Margin (NIM) stood at 2.52% where as Domestic NIM stood at 2.56% in Q1 FY21.

In response to significant challenge of COVID 19, the bank has launched various flagship schemes for business entities, retail customers, SHGs in order to ease out the stress/ tide over the liquidity mismatch or for fulfilling the consumption needs. First, COVID Emergency Line of Credit (CELC) for all existing fund based working capital limit borrowers irrespective of sector and second, Union COVID-19 Personal Loan Scheme (UCPLS) for all govt/ non-govt employees drawing salary through our bank for last 12 months and existing retail borrowers.

As of now, Union Bank of India has 9,590 branches, 13,239 ATMs, 8,218 BC points, 90 SARAL/SARAL Lite (MSME Loan Processing Centres) and 121 ULPs (Retail Loan Processing Centres).

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