In This Article:
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Net Profit: INR 17,957 crores for FY25; Q4 FY25 net profit at INR 2,985 crores, a YoY increase of 51%.
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Operating Profit: INR 7,700 crores for Q4 FY25, a YoY growth of 18%; FY25 operating profit at INR 31,090 crores, a 10% YoY growth.
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Return on Assets (ROA): Improved to 1.35% in Q4 FY25 from 0.97% in the same quarter last year.
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Return on Equity (ROE): Increased to 18.34% from 15.12% YoY.
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Capital Adequacy Ratio: 18.02% with CET1 ratio at 14.98%.
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Gross NPA: Reduced by 116 bps YoY to 3.6%.
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Net NPA: Declined by 40 bps YoY to 0.63%.
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Provision Coverage Ratio: 94.61%.
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Credit Cost: 69 bps for Q4 FY25.
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Net Interest Margin (NIM): 2.91% for FY25.
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Net Interest Income (NII): YoY growth of 1.76%.
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Non-Interest Income: 23% YoY growth.
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Total Deposits Growth: 7.2% YoY.
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Advances Growth: 8.6% YoY.
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Current Account Deposits Growth: 17% YoY.
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Retail Deposits Growth: 8.6% YoY.
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Retail Lending Growth: 22% YoY.
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MSME Growth: 12.5% YoY.
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Dividend: 47.5% for the year ended March 2025, subject to approvals.
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Union Bank of India (BOM:532477) recorded the highest annual net profit of INR17,957 crores for FY25, with a 51% YoY increase in Q4 net profit.
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Operating profit for Q4 FY25 stood at INR7,700 crores, marking an 18% YoY growth, and the full-year operating profit reached INR31,090 crores, registering a 10% YoY growth.
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Return on assets improved to 1.35% in Q4 FY25, up from 0.97% in the same quarter last year, and return on equity increased to 18.34% from 15.12%.
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Capital adequacy ratio is strong at 18.02%, with a CET1 ratio of 14.98%, providing ample headroom for growth.
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Gross NPA reduced by 116 bps YoY to 3.6%, and net NPA declined by 40 bps YoY to 0.63%, reflecting improved asset quality.
Negative Points
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Credit growth was muted at 8.6% for the year, below the target range of 11% to 13%, and deposit growth was also lower than expected at 7.2%.
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Net interest margin (NIM) was at 2.91% for FY25, within the guided range but facing downward pressure due to recent policy rate cuts.
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There was a sharp increase in employee and operational expenses in Q4, partly due to staff-related provisions and CSR spend.
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MSME and Agri slippages saw a sharp sequential increase in Q4, attributed to repeated restructured accounts and automation of asset classification.
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The bank refrained from providing guidance for the next fiscal year due to prevailing market volatility and evolving macroeconomic conditions.