Union Bank of India, a public sector lender, reported a substantial profit for the second quarter of fiscal 2024, outperforming analyst projections and marking significant year-on-year growth. The bank's net interest income also witnessed a rise, further improving its financial performance.
The bank announced on Friday that its Q2 profit for fiscal 2024 stood at Rs 3,511 crore ($470 million), reflecting a sharp increase of 90% from Rs 1,847 crore ($247 million) recorded in the same quarter last year. This robust performance surpassed Bloomberg analysts' forecast of Rs 3,139 crore ($420 million), demonstrating an overall sequential growth of 8.5%.
In addition to the impressive profit growth, Union Bank's net interest income for the second quarter also experienced a surge. The lender reported a 10% increase to Rs 9,126 crore ($1.22 billion) from Rs 8,305 crore ($1.11 billion) in the year-ago period.
Alongside these positive financial results, the bank also made strides in improving its asset quality. According to Friday's exchange filing, Union Bank managed to lower its gross non-performing assets ratio to 6.38%, and its net non-performing assets ratio to 1.30%.
As this story continues to develop, market observers will be keenly watching Union Bank's performance in the coming quarters. The bank's strong Q2 results indicate potential for continued growth and stability in its operations.
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