Union Bank Q4 net down 26% at Rs 578 cr on NPA, high provisions

Bank had reported net profit of Rs 789.38 crore over the corresponding period a year ago

Rise in bad loans and higher contingencies dragged down net profit of state-owned Union Bank of India (UBI) by 26.7% at Rs 578.96 crore for the fourth quarter ended March 31, 2013.

The bank had reported net profit (standalone) of Rs 789.38 crore over the corresponding period a year ago.

Bank's total income on the standalone basis for the January-March period of 2013-14 stood at Rs 8,444.95 crore, up from Rs 7,500.59 crore a year earlier, it said in a BSE filing.

The contingencies towards bad loans were substaintially raised to Rs 920.52 crore during the quarter under review from of Rs 655.53 crore made in the year-ago period.

The net non-performing assets (NPAs) or bad loans in the fourth quarter rose to 2.33% (Rs 5,340.08 crore) from 1.61% (Rs 3,353.38 crore).

Gross NPAs also increased substaintially at 4.08% (Rs 9,563.72 crore) over 2.98% (Rs 6,313.83 crore).

For the full fiscal 2013-14, bank's standalone net profit were down at Rs 1,696.25 crore from Rs 2,157.93 crore in 2012-13.

Total income in the financial year rose to Rs 32,170.93 crore over Rs 27,676.73 crore a year ago.

Shares of the bank were trading 2.3% higher at Rs 148.95 apiece on the BSE in the afternoon.