Union Bank of India Q4 FY25 net profit rises 51% to Rs 4,984 crore

Union Bank of India

Union Bank of India on May 8 reported a 51 percent year-on-year jump in net profit for Q4 FY25, reaching Rs 4,98,492 lakh compared to Rs 3,31,055 lakh in the same period last year.

The rise in profitability was driven by strong growth in net interest income, improved asset quality, and controlled operating expenses, according to the company’s investor presentation.

The bank’s total income for the January to March 2025 quarter stood at Rs 33,25,431 lakh, an increase from Rs 31,05,752 lakh in Q4 FY24.

Interest earned rose to Rs 27,69,522 lakh during the quarter.

Other income also contributed significantly, increasing to Rs 5,55,909 lakh from Rs 4,70,742 lakh in the corresponding quarter last year.

Total expenditure excluding provisions and contingencies was reported at Rs 25,55,416 lakh, compared to Rs 24,52,459 lakh in Q4 FY24.

Interest expended rose to Rs 18,18,117 lakh from Rs 16,91,347 lakh, while operating expenses declined slightly to Rs 7,37,299 lakh from Rs 7,61,112 lakh.

The bank’s operating profit increased to Rs 7,70,015 lakh, up from Rs 6,53,293 lakh in the same period last year.

Provisions and contingencies, excluding tax, were at Rs 1,54,392 lakh, higher than Rs 1,25,955 lakh in the year-ago period. Despite this, profit before tax rose to Rs 6,15,623 lakh from Rs 5,27,338 lakh.

Tax expenses declined significantly to Rs 1,17,131 lakh from Rs 1,96,293 lakh.

For the full financial year, Union Bank of India posted a net profit of Rs 17,98,714 lakh, marking a year-on-year growth from Rs 13,64,831 lakh in FY24. The bank's total income for the year stood at Rs 1,27,53,889 lakh, while total expenditure excluding provisions reached Rs 96,44,885 lakh.

The bank’s asset quality improved notably, with the gross non-performing asset (NPA) ratio declining to 4.76 percent from 7.53 percent a year ago, and the net NPA ratio falling to 0.63 percent from 1.03 percent.

The provision coverage ratio stood at 94.61 percent as of March 31, 2025. The capital adequacy ratio improved to 18.02 percent, with the Common Equity Tier 1 ratio at 14.98 percent.

Earnings per share for FY25 stood at Rs 23.56, up from Rs 18.95 in the previous fiscal.

Return on assets improved to 1.26 percent from 1.03 percent.

The Board of Directors has recommended a dividend of Rs 4.75 per equity share, subject to statutory and shareholder approvals at the upcoming annual general meeting, according to the regulatory filing by the company.