Union Bank of India Q2 profit dips 73%

Gross non-performing assets (NPAs) increased to 10.73 per cent of the gross loans as on September 2016, from 6.12 per cent year ago.

By: ENS Economic Bureau | Mumbai | Updated: November 5, 2016 1:35 am

Public sector lender Union Bank of India has posted a 73.2 per cent fall in net profit to Rs 176.67 crore for the second quarter ended September 2016 as against a net profit of Rs 658.16 crore for the same quarter in the previous fiscal.

Gross non-performing assets (NPAs) increased to 10.73 per cent of the gross loans as on September 2016, from 6.12 per cent year ago. Value-wise, gross NPAs were Rs 29,862.05 crore, up from Rs 15,541.17 crore.

“Total income has increased to Rs 9,347.58 crore for the quarter ended September 30, 2016, from Rs 9,100.90 crore for same quarter year ago,” it said in a regulatory filing. The bank’s provisions for bad loans and contingencies spiked over three-times to Rs 1,620.29 crore for the quarter from Rs 432.51 crore in the year-ago period.

However, the bank said fresh slippages came down to Rs 3,396 crore from Rs 3,603 crore in the June quarter, while recoveries stood at Rs 251 crore and upgrades at Rs 416 crore. with PTI