Recovery of written-off loans helps Union Bank post 93% growth in Q4 profits

Union Bank achieved a 93% rise in net profit for Q4 ended March 2023, attributed to the growth in non-interest income, which countered a smaller rise in interest income. The bank’s net profit rose 61% for the fiscal year. According to A Manimekhalai, Union Bank’s MD and CEO, there was a 62% increase in non-interest income for the quarter due to the recovery of loans written off. However, treasury profits were adversely affected by interest rate volatility. The bank’s gross NPAs decreased from the previous year to 7.35%, while net NPAs were reduced to 1.7%. The bank is looking to achieve growth and increase its retail book’s share to 55%.