On Monday, shares of Union Bank of India nearly raised 6% after the bank had reported its standalone net profit of Rs 333 crore in the June quarter and from April 1, Andhra Bank and Corporation Bank is amalgamated with the state-run bank. The stock gained about 5.74% to Rs 32.20 on the BSE and on NSE, it had jumped 5.74% to Rs 32.20.
The bank had booked a net profit of Rs 381 crore and the pre-amalgamated profit of Rs 224.43 crore in the June quarter a year ago. In the June quarter of current fiscal, Net Interest Income (NII) was up by 17.1% to Rs 6,403 crore as compared to Rs 5,468 crore in the previous year period. Other income was down by 23% at Rs 1,462 crore against Rs 1,897 crore in the June quarter previous year.
Gross Non-Performing Ratio during the quarter stood at 14.95% against 15.59% in the same period year-ago. Net Non-Performing Assets (NPAs) ratio were improved to 4.97% from 6.47%. In the June quarter, operating profit increased by 3% at Rs 4,034 crore which was Rs 3,918 crore in the same period year earlier.
Rajkiran Rai G, MD and CEO of Union Bank of India said that the board had approved fundraising of Rs 10,300 crore, which will comprise Rs 6,800 crore equity and the remaining balance in the form of additional Tier-I Capital.