Union Bank of India 3Q profit down 74pc
Union Bank of India on Thursday posted a 74% decline in net profit in the December quarter on lower net interest income and higher bad loan provisions.
The bank reported a net profit of Rs.78.5 crore for the quarter ended 31 December due to provisions for mounting bad loans and lower net interest income (NII). Net profit a year ago was Rs.302.42 crore.
The bank's provisions for the quarter stood at Rs.1,238 crore against Rs.852 crore a year ago. Provisions for the JulySeptember quarter amounted to Rs.432.5 crore. Provisions rose on account of an intense asset quality review conducted by the Reserve Bank of India (RBI) in the October-December quarter, where the regulator asked banks to consider providing for many stressed assets which were classified as standard. Gross nonperforming assets (NPAs) for the third quarter stood at Rs.18,495 crore, up 19%, as compared with Rs.15,541 crore reported in the second quarter.