Union Bank of India Q2 results: State-owned lender reported a whopping 90% jump in its net profit ₹3,511 crore in the September quarter of fiscal 2023-24. The bank reported a profit of ₹1,847.7 crore in September quarter of fiscal 2022-23.

Union Bank of India’s net NPA declined to 1.30% in the quarter under review compared to 2.64% in the year-ago period. Shares of UBI closed 5.49% higher ₹99.95 per share on the BSE on Friday. The stock value is up 22.79% year-to-date and 89.12% over the last year.

The bank’s net interest income increased 9.89% year-on-year in the quarter under review. The bank’s overall business increased 9.24% year-on-year. In contrast, gross advances increased by 9.50% year-on-year. Total deposits grew 9.04% year-on-year.

Union Bank of India achieved significant improvement in the retail, agriculture and MSME (RAM) segment. Its RAM balance increased by 14.62% year-over-year. There was a year-on-year growth of 14.68% in retail, 15.04% growth in agriculture and 14.03% growth in MSMEs. There was also a significant expansion of Union Bank’s network outside India. The bank comprised 8,521 branches in India and abroad. Additionally, 105 MSME first branches were opened to boost lending to local businesses. To improve accessibility for customers, more than 10,000 ATMs were installed.

A particular focus was on the social welfare programs introduced by the central government. More than 3.51 lakh new registrations were made by the bank under the Pradhan Mantri Jeevan Jyoti Bima Yojana and 28.37 lakh new registrations were made under the Pradhan Mantri Suraksha Bima Yojana. The bank also added new beneficiaries under the Pradhan Mantri Jan Dhan Yojana, Atal Pension Yojana and Union Nari Shakti Scheme for Women Entrepreneurs.

The rise in profits of PSU banks has made them a lucrative opportunity for investors. This quarter also saw a significant rise in profits at other PSU banks. The Central Bank of India saw a 90% increase in its net profit ₹605.4 crore for the September quarter of FY23-24. However, PSUs like Punjab & Sind Bank remained an exception as they registered a decline in their net profit in the September quarter.