Union Bank of India Q3 Results: PSU lender set for best day since March 2023 on strong earnings

Shares of state-run Union Bank of India Ltd. surged as much as 8% on Wednesday, January 14, in response to its quarterly results for the October-December period, which showed improvement in the lender's asset quality.

Union Bank's slippages at the end of the December quarter stood at ₹1,853 crore, compared to ₹2,151 crore during the September quarter.

The lender's asset quality also improved on a sequential basis. Gross Non-Performing Assets (NPA) improved to 3.06% from 3.29% in September, while Net NPAs improved to 0.51% from 0.55% in the previous quarter.

In absolute terms, Union Bank's Gross NPA improved to ₹31,121 crore at the end of the December quarter from ₹32,085 crore in September, while its Net NPAs stood at ₹5,102 crore from ₹5,209 crore last quarter.

Union Bank of India's Net profit increased by 9% on a year-on-year basis to ₹5,017 crore, compared to ₹4,604 crore it reported during the same quarter last year. Its Net Interest Income (NII) or core income remained flat, rising 1% year-on-year to ₹9,328 crore.

Shares of Union Bank of India are trading 7.6% higher in response to its results to ₹178.8, having made an intraday record of ₹180. The stock is up 70% in the last one year. This is the biggest single-day gain for the stock since March 2023.