Home » Union Bank of India Limited – Q3 Results

Last Updated on January 24, 2024 by BFSLTeam BFSLTeam

On January 20, 2024, Union Bank of India Limited (BSE, NSE: UNIONBANK) announced its Q3 2023-24 results, registering robust financial metrics for the quarter, marked by growth in business momentum and healthy Liability franchise. 

Result Takeaways 

Here are the main highlights of the top Bank’s results for Q3 FY24: 

  • Marking robust financial performance for Q3, the Net Profit of the Bank rose by 60.00% YoY.
  • The Net Interest Income of the Bank witnessed a growth of 6.26% YoY in Q3 FY24. 
  • In Q3 FY24, the Bank continues to show a healthy Liability Franchise as CASA deposits rose by 5.62% YoY. The Bank presently has a total deposit base of ₹11,72,455 Cr as of December 31, 2023. 
  • The Business Growth of the Bank gained momentum as the Total Business of the Bank rose by 10.67% YoY, wherein Gross Advances rose by 11.44% YoY and Total Deposits went up by 10.09% YoY. The Bank has a Total Business worth of ₹20,68,429 Cr as of December 31, 2023. 
  • In Q3 FY24, the Bank witnessed growth in Retail, Agri, and MSME (RAM) segments. The segments demonstrated an increase of 13.5% YoY, where Retail grew 12.60%, Agriculture grew 17.88%, and MSME grew 10.51% YoY. 
  • RAM advances as a percentage of Domestic Advances were at 56.28%.
  • Q3 FY24 witnessed a reduction in NPA (%), going down by 310 bps YoY, a decrease of 4.83%. The Net NPA went down 106 bps, to 1.08%. 
  • The third quarter of FY24 was marked by strong capital ratios as CRAR improved from 14.45% in Q3 FY23 to 15.03% in Q3 FY24. The CET1 ratio improved to 11.71% in Q3 FY24, from 10.71% in Q3 FY23. 
  • Q3 results demonstrated an improvement in returns with the Return on Assets of the Bank at 1.07% and the Return on Equity standing at 17.25%.

Additional Read: Q3 Results Dashboard

Financial Inclusion Schemes Gaining Traction

The Bank has launched several financial governmental schemes, and these gained traction in terms of enrolments in Q3 FY24:

  • Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): This scheme had 1.98 lakh new enrollments in Q3 FY24.
  • Pradhan Mantri Suraksha Bima Yojana (PMSBY): This scheme had 8.87 lakh new enrollments. 
  • Pradhan Mantri Jan Dhan Yojana (PMJDY): The Bank was instrumental in opening 2.88 crore new accounts under this scheme, with a balance of  ₹9,604 Cr at the end of Q3 FY24 against ₹2.86 Cr accounts with a balance of ₹8,162 Cr in Q3 FY23. 
  • Atal Pension Yojana (APY): This pension scheme had 2.09 lakh new enrollments.
  • Union Nari Shakti Scheme for Women Entrepreneurs: The Bank sanctioned 18,017 Applications for ₹2,011 Cr in the 9-month period ending with the close of Q3 FY24. 
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Financial Results at a Glance

Here is a glimpse of the financial results of Q3 (figures in ₹ Crore except where indicated by %):

Metrics Q3 FY 2023-24Q2 FY 2023-24Q3 FY 2022-23YoY %QoQ %
Interest Income 25,36324,58720,88321.45%3.16%
Interest Expenses16,19515,46112,25532.15%4.75%
Net Interest Income9,1689,1268,6286.26%0.46%
Non-Interest Income3,7743,6953,27115.39%2.14%
NIM %3.08%3.18%3.21%-13 bps-10 bps
Operating Profit7,2787,2216,6199.95%0.79%
Total Provisions3,6883,7094,374-15.70%-0.59%
Profit After Tax (PAT)3,5903,5112,24560.00%2.24%

Additional Read: Union Bank of India Share Price

Q3 FY24 Result Summary

The Union Bank of India is one of the leading government banks in India, having a pan-India presence, and serving 25 Indian states. With a workforce of over 4600 employees, the Union Bank of India’s footprint is extending to meet the demands of Indians from all walks of life. The Bank has a subsidiary in the UK and collaborations in Malaysia. The Bank has also commenced operations in Sydney and Dubai.

With strong financials on its side and growing revenue with each quarter, the Bank is in a positive position for growth in the upcoming quarters. With the healthy global business mix of the Bank totalling ₹20.68 trillion, the Bank is the fifth largest Public Sector Bank in the sector. 

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