InvestorQ : How did you see the latest quarterly results of Union Bank for the Sep-21 quarter?
Dia Deshpande made post

How did you see the latest quarterly results of Union Bank for the Sep-21 quarter?

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swati Bakhda answered.
1 month ago
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For the quarter ended Sep-21, Union Bank reported 3.4% increase in total revenues at Rs.21,622 crore on a consolidated basis. The revenues from treasury activities were lower on a yoy basis, but revenues from retail banking and corporate banking ended up higher on yoy basis. However, the operating profits of treasury and retail banking contracted, while the losses in corporate banking losses narrowing sharply by 87% over Sep-20 quarter.

On a yoy basis, the net profits for the Sep-21 quarter were up nearly 3-fold or higher by 182.97% at Rs.1,511 crore. Even the quarter on quarter profits were higher by 34.86%. The provisions for doubtful assets, other than taxes and contingencies, were lower by 12.3% compared to the Sep-20 quarter at Rs.3,719 crore. However, the thrust to the profit growth came from the interest cost falling by 14% to Rs.9,882 crore on merger synergies.

For the Sep-21 quarter, Union Bank reported net margins of 6.99% compared to 2.55% in the Sep-20 quarter and 5.45% in the Jun-21 sequential quarter. In terms of asset quality, the gross NPAs were lower by 207 bps at 12.64%. while this is still quite high in absolute terms, the good signals is that the net NPA levels indicate that large part of the stress is provided for. Operating margins improved 541 points to 29.36% in Sep-21 quarter.

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