Q1 2025 Union Bank of India Ltd Earnings Call Transcript
Key Points
- Union Bank of India (BOM:532477) reported a net profit of INR 3,679 crores for the June quarter, marking a 13.7% YoY growth and 11.1% QoQ growth.
- The bank's operating profit reached INR 7,785 crores, showing an 8.5% YoY growth and 19.1% QoQ growth.
- Gross NPA reduced to 4.54%, with gross recovery at INR 3,368 crores and slippage restricted to INR 2,318 crores.
- CASA and retail term deposits form 72% of total deposits, maintaining a consistent ratio.
- S&P Global Rating revised the bank's outlook to positive, and India Rating upgraded the rating to AAA Stable.
- Credit and deposit growth were muted in the first quarter, with domestic credit growing by only 0.59% and domestic deposits slightly decreasing.
- The bank reported a high number of fraud cases, with INR 465 crores in frauds and INR 341 crores outstanding in 128 cases.
- Yield on advances declined by about 15 bps QoQ, primarily due to a fall in DL recovery.
- Standard asset provisioning increased by INR 1,296 crores due to anticipated stress or potential restructuring in a couple of accounts.
- The cost of deposits is expected to rise in the coming quarters due to the tight liquidity position and the need to raise more term deposits.
Ladies and gentlemen, good day. And welcome to the Union Bank of India earnings conference call for the period ended June 30, 2024.
The bank is represented by the Managing Director and CEO, Ms. A. Manimekhalai; Executive Directors: Shri. Nitesh Ranjan, Shri. Ramasubramanian S., Shri. Sanjay Rudra, Shri. Pankaj Dwivedi, and other members of the top management. (Operator Instructions) Please note that this conference is being recorded.
Now, I hand the call over to Mr. Ajay Bansal, Deputy General Manager. Thank you. And over to you, sir.
Thanks, sir. Good afternoon, ladies and gentlemen. I, Ajay Bansal, Head of Investor Relations, welcome you all for Union Bank of India earnings con-call for the period ending June 30, 2024. The structure of the con-call shall include a brief opening statement by respected MD and CEO ma'am. And then, floor will be open for interaction.
Before getting into the con-call, I will read out the usual disclaimer statement. I would like to submit
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