Union Bank of India has released its financial results for Q2 FY25, demonstrating robust growth in profitability despite a slight decline in Net Interest Income (NII).
- Net Interest Income (NII) for Q2 FY25 was ₹9,047 crore, down 0.87% YoY from ₹9,126 crore in Q2 FY24. This decline was mainly due to a 14.23% increase in interest expenses, which rose to ₹17,661 crore from ₹15,461 crore YoY.
- Despite the slight dip in NII, net profit surged by 34.43% YoY to ₹4,720 crore, up from ₹3,511 crore in Q2 FY24. The bank effectively managed its provisions, which dropped by 8.52% YoY to ₹3,393 crore.
Other key highlights:
- Interest Income: ₹26,708 crore, up 8.63% YoY from ₹24,587 crore in Q2 FY24.
- Non-Interest Income: ₹5,328 crore, up 44.19% YoY from ₹3,695 crore in Q2 FY24.
- Operating Profit: ₹8,113 crore, an increase of 12.35% YoY from ₹7,221 crore in Q2 FY24.
- Net Interest Margin (NIM): Declined by 28 basis points YoY to 2.90%, down from 3.18% in Q2 FY24.
Union Bank of India’s strong net profit growth reflects its ability to maintain operational efficiency and manage provisions effectively, positioning it for future success despite the challenges in NII.
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