Union Bank of India Ltd has announced its financial results for Q3 FY25, showcasing significant growth across key financial metrics. The bank has demonstrated resilience and strong operational efficiency during this quarter.
Key Financial Highlights
Revenue Growth
Union Bank earned Rs. 2,69,579.30 million in interest during Q3 FY25, reflecting a 6.29% growth compared to the Rs. 2,53,629.60 million earned in Q3 FY24. Other income also increased by 17.02%, reaching Rs. 44,165.70 million from Rs. 37,743.00 million.
Expense Management
Union Bank effectively managed its expenses while supporting revenue growth. The bank spent Rs. 1,77,176.60 million on interest, marking a 9.40% increase from the Rs. 1,61,949.50 million spent in the same quarter last year. Operating expenses stood at Rs. 61,650.20 million, growing by 8.83% from Rs. 61,650.20 million.
Profit and Tax Performance
The bank improved its profitability significantly. Provisions and contingencies dropped by 8.51% to Rs. 15,990.50 million from Rs. 17,477.90 million. The tax expense saw a sharp decline of 33.54%, reducing to Rs. 12,891.40 million from Rs. 19,398.50 million.
Union Bank reported a 28.24% increase in profit after tax (PAT), reaching Rs. 46,036.30 million, compared to Rs. 35,899.10 million in Q3 FY24. This strong PAT growth highlights the bank’s improved operational efficiency and reduced tax burden.
Year-to-Date Performance
For the year-to-date period, Union Bank earned Rs. 8,00,307.50 million in interest, marking an 8.99% rise from Rs. 7,34,278.70 million. Other income surged by 25.33% to Rs. 1,42,538.30 million, compared to Rs. 1,13,727.70 million in the same period last year. PAT also saw a sharp rise of 25.77%, reaching Rs. 1,30,022.20 million from Rs. 1,03,377.20 million.
Annual Performance Overview
For the full financial year, the bank’s interest earnings jumped 23.57%, reaching Rs. 9,97,779.60 million from Rs. 8,07,433.40 million. Other income grew by 9.89%, amounting to Rs. 1,60,801.90 million from Rs. 1,46,331.50 million. Interest expenses also increased by 31.74%, totaling Rs. 6,32,075.60 million, compared to Rs. 4,79,780.80 million.
Provisions and contingencies declined significantly by 49.13%, dropping to Rs. 67,802.40 million from Rs. 1,33,294.40 million. The bank’s PAT witnessed a 61.84% surge, reaching Rs. 1,36,483.10 million, compared to Rs. 84,332.70 million.
Operational Efficiency
Union Bank focused on operational efficiency, which is evident from the operating profit margin (OPM) of 27.79% for the quarter, slightly lower than the 28.69% in Q3 FY24. For the year-to-date period, the OPM stood at 29.23%, reflecting a marginal drop from 29.52% in the previous year.
Final Thoughts
Union Bank of India Ltd delivered a strong financial performance in Q3 FY25. The bank improved its profitability, managed expenses efficiently, and recorded healthy revenue growth. With a strong balance sheet and strategic financial management, Union Bank remains well-positioned for sustained growth in the coming quarters.
Disclaimer: This blog is for informational purposes only and should not be considered as financial advice or any buy/sell recommendations.
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