Union Bank of India shares fall up to 5% after weakest loan growth in four quarters – CNBC TV18

Shares of State-owned Union Bank of India Ltd.  fell as a lot as 5% on Wednesday, July 9, in response to its enterprise replace for the April-June quarter.

The lender’s loan ebook grew simply 6.8% from final yr, which was not solely the weakest loan growth seen in the final four quarters, but in addition the fourth consecutive quarter when loan growth has been in single digits.

Union Bank’s loan ebook on the finish of the June quarter stood at ₹22.1 lakh crore, in contrast to ₹21.08 lakh crore in the identical quarter final yr.

Complete deposits rose 3.63% yr-on-yr to ₹12.39 lakh crore from ₹11.96 lakh crore. That is additionally the sixth straight quarter when deposit growth has been in single digits.

World gross advances stood at ₹9.74 lakh crore, registering a 6.8% improve over ₹9.12 lakh crore in Q1 FY25.

Additionally Learn: Union Bank of India board clears ₹6,000 crore capital increase by way of fairness, debt devices

The financial institution’s home RAM (Retail, Agriculture, and MSME) portfolio rose 10.31% to ₹5.44 lakh crore. Inside this, home retail advances posted sturdy growth, rising 25.60% yr-on-yr to ₹2.28 lakh crore from ₹1.82 lakh crore.

Fourth Quarter Outcomes

The lender’s web revenue went up by 51% from the identical quarter final yr to ₹4,984.9 crore. The profitability was additionally aided by the next different revenue part, which stood at ₹5,509 crore, in contrast to ₹4,707 crore throughout the identical quarter final yr.

Web curiosity revenue (NII), which is the distinction between the curiosity revenue a financial institution earns from its lending actions and the curiosity it pays to depositors, was up 0.8%, coming at ₹9,514 crore towards ₹9,436.5 crore in the corresponding quarter of FY24.

Additionally Learn: Govt demotes Union Bank of India ED Pankaj Dwivedi to common supervisor

Union Bank’s asset high quality noticed enchancment from the earlier quarter, with Gross NPA at 3.6% from 3.85% in the December quarter, whereas web NPA stood at 0.82% from 0.63% in contrast to the December quarter. Provisions for non-performing belongings noticed a marginal improve from the December quarter to ₹1,675 crore from ₹1,477 crore.

Shares of Union Bank of India are buying and selling 4.4% decrease on Wednesday at ₹143.45. The inventory has declined 8% in the final one month and is among the many worst performers on the Nifty PSU Bank index.