Union Bank of India: Strong Financial Performance and Optimistic Future Outlook in FY 2023-24


Union Bank of India, a prominent public sector bank, reported a significant uptick in its financial performance for the fiscal year 2023-24, particularly in the fourth quarter. The bank’s strategic financial management and reduction in provisions for bad loans played a pivotal role in achieving an 18.36% increase in its consolidated net profit for the March quarter, reaching ₹3,328 crores.

Yearly Performance Analysis

Cumulative Net Profit

For the fiscal year 2023-24, Union Bank of India’s cumulative net profit soared to ₹13,797 crores, marking a substantial improvement from the ₹8,512 crores recorded in the previous fiscal year. This growth in profit can largely be attributed to the bank’s effective management of non-performing assets (NPAs) and enhanced lending practices.

Quarterly Performance

The bank’s standalone net profit also saw a remarkable increase during the same period, climbing to ₹3,311 crores from ₹2,782 crores in the previous year’s corresponding quarter. This indicates a robust internal financial management and operational efficiency.

Key Financial Metrics

Interest Income and Advances

The bank reported an 11.7% increase in advances, which in turn boosted the main net interest income by 14.38%, reaching ₹9,437 crores. This increase is significant as it reflects the bank’s ability to generate income from its core activities.

Net Interest Margin

An important metric for banks, the net interest margin, saw an improvement from 2.97% a year ago to 3.10%. This increment highlights the bank’s enhanced efficiency in converting interest income into profits.

Future Projections and Strategy

Loan and Deposit Growth

The Managing Director and CEO, A. Manimekhalai, shared optimistic projections for the fiscal year 2024-25, expecting loan growth to be between 11-13% and deposit growth to be between 9-11%. These projections suggest a strong growth trajectory and a solid foundation for future financial stability.

Reduction in Provisions for NPAs

The bank has successfully reduced its total provisions for non-performing assets from ₹4,041 crores a year ago to ₹3,222 crores. This reduction not only helps in improving the profitability but also reflects the bank’s improving asset quality.


Union Bank of India’s impressive performance in the fiscal year 2023-24 underscores its strategic prowess in financial management and operational efficiency. With a clear focus on reducing bad loans and enhancing lending practices, the bank is well-positioned to continue its growth trajectory in the coming years. Investors and customers alike can look forward to a stable and profitable entity focused on sustainable growth and robust financial health.

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