Union Bank Q2 profit jumps to Rs 1.39 bn, beats analysts estimates

Union Bank of India posted a surprise quarterly profit on Monday as the state-controlled lender set aside lower provisions for bad loans.

Net profit was Rs 1.39 billion ($18.92 million) in its fiscal second quarter ended Sept. 30, compared with a loss of Rs 15.31 billion  a year ago, the bank said.

Analysts on an average had expected a loss of Rs 937 million, according to Refinitiv data.

Provisions for bad loans dropped 50.6 per cent to 17.10 billion rupees. Gross bad loans as a percentage of total loans stood at 15.74 per cent at end-September, compared with 16 per cent a quarter earlier, and 12.35 per cent a year earlier.