Higher bad loan provisions pushed down Union Bank of India’s June quarter net profit by 22% to Rs 518.78 crore, but the public lender expressed confidence it will be able to contain dud loans going forward. Total income of the bank increased to Rs 9,043.17 crore during the first quarter from Rs 8,547.56 crore in the three month period of 2014-15 financial year. 416 crore and total income 4.2 percent less than Rs.6,599 crore registered quarter ago.
Advertisement
The gross non-performing loans stood at 0.69 percent of the loan portfolio in the quarter ending June 30 as compared to 0.70 percent in the corresponding quarter of the previous year.
Similarly, net NPA also increased 44 percent YoY to Rs.4,721 crore from Rs.3,272 crore in same period year ago and 23 percent sequentially from Rs.3,844 crore quarter ago.
On a sequential basis too, both gross and net NPAs rose from 4.96% and 2.71 per cent respectively in the March quarter. The bank had a net profit of Rs 664.11 crore in the April-June quarter of 2014-15 fiscal. Analysts polled by Bloomberg had been expecting the bank to post a profit of Rs.356.8 crore.
Provisioning during the quarter rose to Rs1,811 crore, from Rs928 crore in the June quarter of the previous fiscal.
Syndicate Bank’s gross NPA rose to 3.72 per cent from 2.97 per a year ago.
He added that credit demand from industry remains muted, with stress still seen in sectors such as infrastructure, sugar, steel and power.
The consolidated profit after tax stood at Rs.
Advertisement
The second-biggest state-run lender, Bank of Baroda, and the biggest private-sector lender, ICICI Bank, are due to report first-quarter earnings this week. The net NPA (non-performing asset) ratio of the lender stood at 2.36 per cent against 1.88 per cent the year-ago period. HDFC Bank declared a dividend of Rs. Other income rose 13% to Rs.1,397 crore from Rs.1,236 crore.
