Public sector lender Union Bank of India has registered an increase of 12.5 per cent in net profit to Rs 108.22 crore during the fourth quarter ended March 2017 on higher income from investment and other sources. Besides, there were reversal of provisioning for taxes during the quarter. Bank had posted a net profit of Rs 96.12 crore in corresponding quarter of preceding fiscal ended March 2016.
Total income during the March quarter of 2016-17 fiscal rose to Rs 9,771.04 crore from Rs 8,884.41 crore in the year ago quarter, it said in a regulatory filing. For the full year, bank’s net profit, however, was down at Rs 555.21 crore in 2016-17 as against Rs 1,351.60 crore a year ago. Total income during the fiscal ended March was at Rs 37,624.58 crore from Rs 35,830.54 crore, showed the bank balance sheet.
Asset quality of the bank worsened with gross non- performing assets (NPAs) rising to 11.17 per cent of gross advances at the end of March 31, 2017 against 8.70 per cent year ago. Net NPAs or bad loans were at 6.57 per cent of net advances at the end of last fiscal from 5.25 per cent year ago.
Provisioning for bad loans and contingencies during the quarter increased to Rs 2,444.12 crore from Rs 1,564.67 crore year earlier. The reversal towards tax provisions were to the tune of Rs 418.29 crore during the quarter, vis-a-vis a reversal of Rs 251.18 crore year ago. Shares of Union Bank closed 0.56 per cent up at Rs 188 on BSE.