Union Bank of India Q4 net profit plunges 78% as bad loans rise

Gross bad loans as a percentage of total loans increased to 8.70% in March quarter from 7.05% in December quarter

State-run Union Bank of India reported a 78% drop in its fourth-quarter profit as it raised provisions for bad loans.

Company's net profit fell to 961.2 million rupees ($14.39 million) on a standalone basis for the fiscal fourth quarter ending March 31, from 4.44 billion rupees a year earlier, the Mumbai-based bank said in a regulatory filing on Friday.

Analysts on average had expected a net profit of 2.43 billion rupees, according to data compiled by Thomson Reuters.

Gross bad loans as a percentage of total loans increased to 8.70% in the March quarter from 7.05% in the December quarter.

Provisions, including for loan losses, were 55% higher compared with last year at 15.65 billion rupees.