State-owned Union Bank of India today reported a decrease of 30 per cent in net profit to Rs 116.58 crore for the first quarter ended June, as non- performing assets weighed down.
Bank's net profit in the corresponding quarter of 2016-17 was Rs 166.32 crore.
Total income of the lender, however, increased to Rs 9,567.69 crore in the June quarter of 2017-18, as against earnings of Rs 8,916.51 crore in the same period of 2016-17.
Slippages with regard to asset quality increased with gross non-performing assets (NPAs) expanding to 12.63 per cent of the gross advances as on June 30, 2017 from 10.16 per cent by June 30, 2016.
Net NPAs or bad loans also rose to 7.47 per cent of the net loans disbursed by end of June quarter, from 6.16 per cent as at end-June 2016.
The lender parked aside Rs 1,703.71 crore as a provision for bad loans and contingencies for the first quarter of this fiscal, higher than Rs 1,352.96 crore provision for same period of 2016-17.
The net interest income, the core business, earned the bank Rs 2,243 crore during April-June, up 6.7 per cent from Rs 2,103 crore year-ago period.
Also, the cost to income ratio improved to 43.79 per cent for the quarter under review from 48.28 per cent year earlier.
Union Bank of India scrip closed 5.15 per cent down at Rs 134.45 on BSE.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)