Union Bank of India Revises FD Rates Up to 7.30%, Reports Strong Q2 FY25 Growth

Union Bank of India, a well-established public sector bank founded on November 11, 1919, has recently adjusted its fixed deposit (FD) interest rates for deposits below ₹3 crore. These revised rates, effective from November 1, 2024, offer up to a maximum of 7.30% interest on a 456-day term. Here’s a detailed breakdown of the new rates:

Fixed Deposit Interest Rates for Deposits Below ₹3 Crore (Effective November 1, 2024)

1. Short-term Deposits:
   • 7 to 45 days: 3.50%
   • 46 to 90 days: 4.50%
   • 91 to 120 days: 4.80%
   • 121 to 180 days: 5.00%
2. Medium-term Deposits:
   • 181 to 332 days: 6.35%
   • 333 days: 7.00%
   • 334 days to 1 year: 6.35%
   • 1 year to 398 days: 6.80%
   • 399 days: 7.00%
   • 400 to 455 days: 6.60%
   • 456 days: 7.30% (highest rate)
   • 457 days to 996 days: 6.60%
   • 997 days: 6.40%
   • 998 days to less than 3 years: 6.60%
3. Long-term Deposits:
   • 3 years: 6.70%
   • 3 to 10 years: 6.50%

Financial Performance in Q2 FY25

Union Bank of India reported strong results for the quarter ending September 30, 2024:

• Net Profit: Increased by 34.43% year-over-year.
• Non-Interest Income: Rose by 44.19% compared to the previous year.
• Domestic Deposits: Grew 8.12% year-over-year, reaching a total of ₹12,41,947 crore.
• Overall Business Growth: Total business grew by 9.37%, with gross advances up 9.63% and total deposits rising by 9.17%, bringing the bank’s total business to ₹21,70,779 crore.
• Asset Quality: Significant improvement, with gross non-performing assets (NPA) reduced by 202 basis points to 4.36% and net NPA lowered by 32 basis points to 0.98%.
• Return on Equity (ROE): 19.10%
• Return on Assets (ROA): 1.35%

These changes in FD rates, alongside Union Bank’s solid Q2 performance, reflect the bank’s commitment to delivering competitive returns to its depositors while strengthening its financial position.

Disclaimer: The information provided is for general informational purposes only and does not constitute financial advice. The interest rates and financial figures mentioned are subject to change and should be verified by the Union Bank of India or relevant authorities. Please consult a financial advisor before making any investment decisions.