Union Bank of India net profit up 255% to Rs 1,181 crore in June quarter

 Net interest income rose by 9.53 per cent year-on-year in Q1FY22 to Rs 7,013 crore

Public sector lender Union Bank of India on Thursday reported a net profit of Rs 1,181 crore for the June quarter, a 254.9 per cent rise over Rs 333 crore last year, helped by improvement in interest margins and other income.

The lender’s stock ended 6.9 per cent higher on the BSE at Rs 37.95 per share. The bank in a statement said its net interest income rose by 9.53 percent year-on-year (YoY) in Q1FY22 to Rs 7,013 crore versus Rs 6,403 crore in the quarter ended June 2020 (Q1FY21).

Net interest margin improved to 3.08 per cent for Q1 against 2.78 per cent in the year-ago period.

Rajkiran Rai G, managing director & chief executive of the bank, said it was a Covid disrupted quarter (Q1FY22) with a second wave impacting life and livelihood. Encouragingly high-frequency data has signaled revival inactivity as mirrored in googled mobility indicators, power consumption, rail freight, and UPI.