Mumbai: State-owned Union Bank of India on Tuesday reported a 183 per cent jump in its consolidated net profit to Rs 1,510 crore for the September 2021 quarter, primarily driven by recovery from the DHFL account that was written off earlier.
The lender's net profit had stood at Rs 533.87 crore in the corresponding quarter last year, according to a BSE filing.
The bank's core net interest income grew 8.52 per cent to Rs 6,829 crore on a loan growth of about three per cent and an expansion in net interest margin to 2.95 per cent as against 2.78 per cent in the year-ago period.
The non-interest income during July-September 2021 grew 65.32 per cent to Rs 3,978 crore, mainly on the back of a Rs 1,764-crore recovery in written-off accounts.
Speaking to reporters, its Chief Executive and Managing Director Rajkiran Rai G said the overall recoveries are Rs 5,341 crore, out of which Rs 1,650 crore came from DHFL recovery alone, which helped the profit.
The bank is witnessing healthy loan growth on the retail and agriculture side but the corporate uptick is sluggish, he said adding that it is targeting to end FY22 with a loan growth of up to eight
per cent.
Its gross non-performing assets ratio came down to 12.64 per cent at the end of September 2021, against 14.71 per cent a year ago.