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Union Bank of India has posted a net profit of Rs 139.03 crores for the September-end quarter, on lower provisioning for bad loans. State-owned bank had earlier reported a net loss of Rs 1,530.72 crore in the corresponding quarter period of the previous fiscal.
According to the bank’s regulatory filing, the total income of the bank stood at Rs 9,438.26 crores during the quarter under review, as against Rs 9,439.73 crores in the corresponding period of 2017-18 fiscal.
The bank had posted a net profit of Rs 129.54 crores in the first quarter of the current fiscal. Provisions for bad loans fell to Rs 1,710.01 crores during the quarter under discussion, from Rs 3,464.71 crores in the corresponding quarter of 2017-18.
The Union Bank of India asset quality declined, as gross non-performing assets (NPAs) reached 15.74 per cent of gross advances in the July-September of 2018, as against 12.35 per cent by September-end 2017.
Net NPAs stood at Rs 24,656.94 crore in the September-end quarter of 2018, as against Rs 19,479.39 crore from the preceding fiscal. Net NPAs also rose to 8.42 per cent by the end of second quarter of 2018-19 against 6.70 per cent in September 2017-18 but were down compared to 8.70 per cent in the April-June quarter of the current fiscal.
In absolute terms, gross non-performing assets (NPAs) of the bank stood at Rs 50,157.42 crore as on September 2018 against Rs 38,285.84 crore in the year-ago period. During the quarter, the bank had paid Rs 1 crore as the penalty imposed by the Reserve Bank on account of delay in reporting of fraud in one account, it said.
