New Delhi: Union Bank of India has released its first quarter (April-June 2025) results. The results clearly show that while the bank's profit has increased, some parts of its earnings have also declined. During this period, the bank's Non-Performing Assets (NPA) situation has improved, which is considered a major relief.
Bank Increased Profit, But Some Decline in Earnings
The bank's total net profit in this quarter stood at ₹4,116 crore, compared to ₹3,679 crore in the same quarter last year. This represents an increase of approximately 12%.
Now, let's talk about the bank's earnings, where a mixed picture emerges. The bank's total interest income increased to ₹27,296 crore this time, which is slightly higher than last year. However, net interest income (NII) decreased to ₹9,113 crore, compared to ₹9,412 crore in the same quarter last year.
Operating Profit Also Declined
The bank's operating profit, i.e., earnings from day-to-day banking operations, has also decreased. Last time it was ₹7,785 crore, which has now decreased to ₹6,909 crore. This is a decrease of approximately 11%.
According to the bank, one reason for this decline is the increase in some expenses and pressure from interest rates.
Improvement in Non-Performing Assets (NPA) Situation
The most relieving aspect is that the bank's non-performing loan situation has now improved.
- Gross NPA has decreased to 3.52%, compared to 4.54% a year ago.
- Net NPA has also decreased to 0.62%, while it was 0.90% previously.
A decrease in NPA means that the bank has done a better job of recovering or preventing bad loans.
As a result, the bank also had to reduce provisioning. The previous figure was ₹1,651 crore, which has now decreased to ₹1,153 crore.
Bank's Financial Health Strengthened
Union Bank also reported that several of its financial indicators have improved in this quarter:
- Provision Coverage Ratio has increased to 94.65%, compared to 93.49% previously.
- Return on Assets (ROA) is now 1.11%, compared to 1.06% previously.
- Capital Adequacy Ratio (CAR) is now 18.3%, compared to 17.02% previously.
This means that the bank is now more secure and financially stable.
Increase in Lending
In this quarter, Union Bank's total loan book has also increased. The bank reported that its total loan book as of June 2025 stood at ₹9,74,489 crore, which is 6.83% higher than last year. The previous figure was ₹9,12,214 crore.
This indicates that the bank's loan demand remains b and people are showing confidence in taking loans.
