Q2 2025 Union Bank of India Ltd Earnings Call Transcript
Key Points
- Union Bank of India (BOM:532477) achieved its highest ever operating profit and net profit for the quarter, with operating profit reaching INR8,113 crores, reflecting a 12.4% growth, and net profit at INR4,720 crore, showing a 34.4% year-on-year growth.
- The bank's capital adequacy ratio improved to 17.13%, with the CET ratio increasing to 13.88% as of September 2024.
- Asset quality showed improvement with gross NPA reducing by 202 basis points and net NPA reducing by 32 basis points, while the provision coverage ratio improved by 76 basis points to 92.79%.
- Union Bank of India (BOM:532477) ranked second in the EASE 7.0 ranking for the first quarter and achieved first place under the theme 'Banking towards Viksit Bharat'.
- The bank has significantly strengthened its digital capabilities, with initiatives such as the VYOM app, digital onboarding, and fintech partnerships, contributing to enhanced performance and customer experience.
- The bank's net interest margin (NIM) declined to 2.97% for H1 FY25, primarily due to adjustments and penal charges as per RBI guidelines.
- There was a significant slippage from a single large account, contributing to higher slippages of INR7,537 crores against the guidance of INR11,500 crores for FY25.
- Deposit growth was relatively low at 1.67% for the half-year, raising concerns about meeting the annual target of 9% to 11%.
- The cost of deposits increased by 35 basis points year-on-year, attributed to a slow rate of growth in CASA and the introduction of high-cost retail term deposit products.
- The bank's credit growth was muted at 2.5% for the half-year, necessitating a significant increase in credit expansion in the remaining months to meet the annual target.
Ladies and gentlemen, good day and welcome to the Union Bank of India earnings conference call for the period ended, September 30, 2024. The bank is represented by the Managing Director and CEO, Ms. A. Manimekhalai; Executive Director, 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. I now have the conference over to Mr. Ajay Bansal, Deputy General Manager. Thank you and over to you, sir.
Thank you madam. Good afternoon, ladies and gentlemen. I Ajay Bansal, Head of Investor Relation, welcome you all for Union Bank of India earning for the period ending September 30, 2024. The structure of con-call shall include a brief opening statement by respected MD and CEO madam and that then the 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 that
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
