Public sector lender Union Bank of India on Friday reported a loss of Rs 1,531 crore in the September quarter of FY18, owing to a more than doubling of its provisions to Rs 3,555 crore.
The bank said that it has set aside Rs 1,566 crore as provisions from the first list of accounts sent to the National Company Law Tribunal (NCLT), instead of spreading it over a few quarters.
Had the bank not front-loaded the provisions in Q2, it would have reported a loss of Rs 500 crore. Its asset quality deteriorated in the quarter, with gross non-performing assets (NPAs) as a percentage of total advances rising 162 basis points (bps) on a year-on-year (y-o-y) basis to 12.35 per cent. In absolute terms, gross NPAs stood at Rs 38,286 crore while net NPAs stood at Rs 19,479 crore in Q2FY18.
However, on a sequential basis, the bank fared better as gross NPA ratio fell 28 basis points (bps) and net NPA ratio fell 77 bps. (With inputs from FE)