1. Union Bank reports 12.5% rise in Q4 net

Union Bank reports 12.5% rise in Q4 net

Government-owned Union Bank of India on Monday reported a 12.5% year-on-year (y-o-y) rise in its net profit at Rs 108 crore for the March quarter owing to a 45% y-o-y jump in other income to Rs 1,446.6 crore.

By: | Mumbai | Published: May 9, 2017 6:47 AM
In absolute terms, GNPAs stood at Rs 33,712 crore while net NPAs stood at Rs 18,832 crore in the quarter under review.

Government-owned Union Bank of India on Monday reported a 12.5% year-on-year (y-o-y) rise in its net profit at Rs 108 crore for the March quarter owing to a 45% y-o-y jump in other income to Rs 1,446.6 crore. Although its asset quality improved sequentially by 53 basis points (bps) to 11.7%, the bank witnessed an asset quality deterioration on a y-o-y basis. Gross non-performing assets (GNPAs) constituted 11.17% of total advances, as much as 247 bps higher than the corresponding quarter last year.

In absolute terms, GNPAs stood at Rs 33,712 crore while net NPAs stood at Rs 18,832 crore in the quarter under review. The bank’s total slippages during the quarter stood at Rs 2,951 crore. According to chairman Arun Tiwari, the steel sector is the most stressed among all the sectors and it will take another year to come out of the woods. “The recent NPA ordinance will hasten recovery in the next two to three months,” he said.

The bank reported a total income of `9,771 crore, up 10% y-o-y, of which interest income was at `8,325 crore. Net interest income (NII) — the difference between interest earned and interest expended — stood at `2,387 crore, up 14.5% y-o-y.

The bank’s domestic net interest margin stood at 2.40% in Q4FY17 as against 2.04% in the sequential quarter.
The lender’s current and savings account (CASA) ratio improved to 34.4% during the quarter under review, compared with 32.3% in the same quarter last year. Its total deposits rose 10% y-o-y to `3.78 lakh crore during the March quarter.

Total provisions stood at `2,444 crore in the March quarter, 56% higher than its provisions in the same quarter last year. However, the portion of provisions allocated for NPAs decreased by 25% over the same period to `1,505 crore.
Shares of Union Bank on Monday closed up 0.56% at `188 on the BSE.

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