Union Bank of In­dia 3Q profit down 74pc

The Pak Banker - - COMPANIES/BOSS -

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.

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