MUMBAI: State-owned Union Bank of India has reported a healthy set of numbers with net income rising by 28.24 per cent on-year to Rs 4,604 crore driven by higher non-interest income coupled with improved asset quality which cushioned a fall in net interest margin in the December quarter.
However, sequentially, the lender’s net profit declined 2.46% from Rs 4,720 crore in the September 2024 quarter.
The management of the city-based lender told reporters here Tuesday that the bank’s non-interest income which includes fees, commissions, treasury revenue, and recoveries, grew 17.02% to Rs 4,417 crore while the key interest income rose 9.40% to Rs 17,718 crore as its net interest margin fell 17 bps to 2.91% due to spike in cost of funds.
Interest income rose 6.29% to Rs 26,958 crore and interest expenses rose higher at 9.40% to Rs 17,718 crore and the net interest income inched up 0.79% to Rs 9,240 crore and non-interest income clipped at 17.11% to Rs 4,417 crore.
Better asset quality has the bank making 21.7% less provisions at Rs 2,888 crore during the quarter.
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