Union Bank of India shares close nearly 2% higher after Q1 earnings

Shares of Union Bank of India on Monday closed with nearly 2 per cent gains after the lender reported a standalone net profit of Rs 333 crore for the June quarter.

The stock, which gained 5.74 per cent to Rs 32.20 during the day on the BSE, later closed at Rs 30.90, higher by 1.48 per cent.

On the NSE, it settled with a gain of 1.64 per cent at Rs 30.95.

The state-owned bank, which amalgamated Andhra Bank and Corporation Bank from April 1, on Friday reported a standalone net profit of Rs 333 crore for the quarter ended June.

The amalgamated entity had booked a profit-after-tax of Rs 381 crore in the same period of the previous fiscal. The pre-amalgamated profit in the June 2019 quarter was Rs 224.43 crore.

"Overall the performance of the amalgamated entity was quite satisfactory. Amalgamation is proceeding as per the fixed timelines," the bank's managing director and CEO Rajkiran Rai G said.

He said the bank saw a substantial improvement in its net interest income and also on the operating profit side.

Net interest income rose by 17.1 per cent to Rs 6,403 crore as compared to Rs 5,468 crore.

Gross non-performing ratio improved to 14.95 per cent compared to 15.59 per cent.

Net NPA ratio improved to 4.97 per cent from 6.47 per cent.