 "Union Bank of India dips on disappointing Q3 results")
Union Bank of India has dipped 6% to Rs 236 after reporting a lower than expected net profit at Rs 302 crore for the third quarter ended December 31, 2014 (Q3), due to higher provisioning for bad loans and employee cost. The state-owned lender had profit of Rs 349 crore in a year ago quarter.
Net interest income (interest income minus interest expended) grew 8% at Rs 2,121 crore in December quarter against Rs 1,963 crore in the corresponding quarter of previous fiscal.
Analyst on an average had expected net profit of Rs 458 crore on net interest income of Rs 2,270 crore for the quarter.
The provisions for bad loans increased by 40% at Rs 852 crore against Rs 610 crore, while employee cost jumped 17% at Rs 966 crore from Rs 823 crore in previous year quarter.
The bank’s gross non-performing assets (NPA) ratio stood at 5.08% compared with 4.69% in the preceding quarter. The net NPA ratio stood at 2.95% against 2.71% in September quarter.
The stock opened at Rs 252 and touched a low of Rs 235 on BSE. A combined 4.6 million shares changed hands on the counter till 1203 hours on BSE and NSE.
Net interest income (interest income minus interest expended) grew 8% at Rs 2,121 crore in December quarter against Rs 1,963 crore in the corresponding quarter of previous fiscal.
Analyst on an average had expected net profit of Rs 458 crore on net interest income of Rs 2,270 crore for the quarter.
The provisions for bad loans increased by 40% at Rs 852 crore against Rs 610 crore, while employee cost jumped 17% at Rs 966 crore from Rs 823 crore in previous year quarter.
The bank’s gross non-performing assets (NPA) ratio stood at 5.08% compared with 4.69% in the preceding quarter. The net NPA ratio stood at 2.95% against 2.71% in September quarter.
The stock opened at Rs 252 and touched a low of Rs 235 on BSE. A combined 4.6 million shares changed hands on the counter till 1203 hours on BSE and NSE.
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