Shares of Union Bank of India Ltd. climbed over 3% in trade on Wednesday, July 15, after the state-run lender reported a strong set of earnings for the June quarter, driven by robust profit growth and an improvement in asset quality.The bank’s net profit rose 29.6% year-on-year to ₹5,332 crore from ₹4,115 crore a year ago.
Net interest income (NII) increased 10% to ₹10,037.3 crore, compared with ₹9,112.5 crore in the corresponding quarter last year.Asset quality also improved sequentially. Gross non-performing assets (GNPA) eased to 2.65% from 2.82% in the March quarter, while net NPA (NNPA) declined marginally to 0.47% from 0.48%.
In absolute terms, gross NPAs fell to ₹29,093 crore from ₹30,400.7 crore in the previous quarter, while net NPAs declined to ₹5,017 crore from ₹5,067 crore.
