You are here: Home » Finance » News » Banks
Business Standard

Union Bank's Q1 net down 30% at Rs 116 cr

Union Bank stock closed 5% down at Rs 134 per share on the BSE

Abhijit Lele  |  Mumbai 

People stand in a long queue to withdraw money at an ATM in Allahabad
People stand in a long queue to withdraw money at an Union Bank ATM in Allahabad

Public sector lender Union Bank of India’s for the first quarter ended June 2017 (Q1FY18) dipped by 30.1 per cent to Rs 116 crore on a sharp rise in provisions for bad loans and taxes.

The Mumbai-based lender had posted a of Rs 166 crore in April-June 2016 (Q1FY17).

Its quality came under pressure due to slippages in the first quarter of FY18. Sequentially Gross Non-performing Assets (GNPAs) rose by Rs 3,574 crore to Rs 37,286 crore (12.63 per cent) over level for Rs 33,712 crore (11.17 per cent) at end of March 2017. The gross stood at Rs 27,280 crore (10.16 per cent) at end of June 2016.

The money set aside for bad loans also went up substantially (Rs 370 crore) in the quarter to Rs 1,875 from Rs 1,505 crore in January-March 2016.

Union Bank closed 5 per cent down at Rs 134 per share on the Exchange (BSE).

Its interest (NII), difference between interest earned and expenses, rose by 6.7 per cent in the reporting quarter to Rs 2,243 crore from Rs 2,102 crore in Q1Fy17, according to quarterly results filed with

The other comprising treasury revenues, fees and commissions rose 36 per cent to Rs 1,414 crore from Rs 1,039 crore.

Its provisions for non-performing assets (NPAs) went up sharply by 39.3 per cent to Rs 1,875 crore in Q1FY18 from Rs 1,346 crore in April-June 2016. The Provision Coverage stood at 51.13 per cent at end of June 2017, up from 50 per cent in June 2016. The PCR was at 51.41 per cent at end of March 2016.

Its tax expenses more than doubled to Rs 236 crore in Q1FY18 from Rs 105 crore in the Q1FY17.

The (CAR) was at 12.01 per cent with tier 1 of 9.24 per cent at end of Q1Fy18. Its was 10.75 per cent with tier 1 of 8.39 per cent at end of June 2016.

Bank plans to equity upto Rs 2,000 crore in the current financial year. It could use combination of public offering, rights issue and institutional placement to raise equity

First Published: Fri, August 11 2017. 01:06 IST
RECOMMENDED FOR YOU