Union Bank of India on Thursday reported a 74.03% drop in its third-quarter net profit to Rs 78.54 crore largely on the back of a 45.28% y-o-y rise in provisions to Rs 1237.65 crore. Even when it comes to the top-line, the public sector bank saw a marginal decline in its total income as a 18.38% y-o-y drop in revenue from retail banking operations overshadowed healthy growth in revenue from treasury operations and wholesale/corporate banking segments.
The bank also saw its net interest income — the difference between interest earned and interest expended drop by 5.88% y-oy-y to Rs 1996.51 crore as compared to Rs 2121.23 crore in the same quarter last year, while domestic net interest margin (NIM) shrank by 26 bps to 2.31%. On a positive note, the December quarter saw CASA deposits in the bank cross the Rs 1 lakh crore mark for the first time.
