Union Bank said on Saturday net profit fell to 1.67 billion rupees for the three months to June 30, from 5.19 billion rupees a year earlier.
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However, about 44 per cent of respondents have tightened their credit standards for large enterprises due to rising NPAs and higher sector-specific risk.
Gross non-performing assets (NPAs) shot up 95 per cent to Rs, 14,137 crore in Q1 from Rs 7,238 crore year ago and net NPAs up 123 per cent to Rs 8,147 crore from Rs 3,650 crore year ago.
The survey was conducted in July for the period January-June 2016.
Stocks of the bakery and dairy product maker closed 9.38 per cent up at Rs 3152.05 after it posted 13.2 per cent increase in its consolidated net profit at Rs 219.1 crore for the first quarter ended June 2016 as against to net profit of Rs 193.7 crore in April-June of the previous fiscal.
According to the survey, 56 per cent of the participating banks reported an increase in long-term loans especially in the infrastructure sectors namely, power, road, and telecom. Capital adequacy ratio of the bank under Basel III stood at 10.75 per cent in the quarter ended June 30, increase over 10.14 per cent in June 2015. Sixty per cent of the total portfolio of these 20 banks, went as loans and advances followed by 30 per cent to be kept in the form of government securities as statutory liquidity rato (SLR) requirements at a rate decided by the RBI.
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Banks have welcomed guidelines for “On Tap” Licensing of Universal Banks, which they believe will be effective in promoting competition in the banking sector and for achieving the objective of financial inclusion in India.
