Union Bank of India’s net profit rose 106.8 per cent year-on-year (YoY) to Rs 2,245 crore in the quarter-ended December (Q3 FY23) on the back of improved net interest margin (NIM).

The Mumbai-based public sector lender made a net profit of Rs 1,085 crore in Q3 of FY22. Net profit was higher in Q3 FY23 compared to Q2 FY23 when it was Rs 1,848 crore.

The bank’s stock was trading 0.37 per cent higher at Rs 81.9 per share on the BSE on Friday. Total capital adequacy ratio (CAR) stood at 14.45 per cent in December 2022. The bank is considering Qualified Institutional Placement (QIP) for raising equity capital of about Rs 3,800 crore in the current quarter ending March 2023, subject to market conditions. This could reduce the government’s stake in Union Bank to 79 per cent, said A Manimekhalai, the lender’s managing director and chief executive officer (CEO).

Union Bank's net interest income (NII) was up 20.26 per ce