Union Bank Q4 net up 8.26% on improvement of net interest margins

Public sector lender Union Bank of India’s net profit rose by 8.26 per cent year-on-year to Rs 1,440 crore in the fourth quarter ended March 2022, on improvement of net interest margins.

It had posted a net profit of Rs 1,330 crore in Q4FY21.

For FY22, the net profit rose by 80.05 per cent to Rs 5,232 crore from Rs 2,906 crore in FY21. 

The board has recommended a dividend of Rs 1.9 per equity share (of face value of Rs 10) for 2021-22, subject to shareholders’ nod, the bank informed BSE.

The Mumbai-based lender’s net interest income (NII) expanded by 25.29 per cent to Rs 6,769 crore in Q4FY22 from Rs 5,403 crore in Q4FY21. The net interest margin (NIM) improved to 2.75 per cent for Q4FY22 as against 2.38 per cent for Q4FY21. 

Non-interest income declined by 25.1 per cent year-on-year to Rs 3,243 crore in Q4FY22. 

Advances increased by 9.6 per cent YoY to Rs 7.16 trillion, while the retail lending portfolio increased 8.65 per cent to Rs 1.36 trillion.