Union Bank of India surges on robust Q2 results

Q2 net profit up 57% at Rs 554 crore on year-on-year, due to higher interest income and lower provisioning for bad loans.

Union Bank of India has surged over 6% at Rs 219 on reporting 57% year-on-year (yoy) jump in net profit at Rs 554 crore due to higher interest income and lower provisioning for bad loans. The state-owned bank had profit of Rs 353 crore in a year ago quarter.

“Net interest income (NII) grew 11% at Rs 1,850 crore on y-o-y basis. Net interest margins (NIIM) however, declined marginally to 3.02% from 3.21% during the recently concluded quarter,” Union Bank of India said in a press release.

During the quarter under review, the bank’s provisions against bad loans and other contingencies declined 22% to Rs 487 crore against Rs 623 crore.

The bank’s gross non performing assets (NPA) decline to 3.66% from 3.76%, while Net NPA fallen to 2.06% from 2.20% on quarter on quarter basis

The stock opened at Rs 210 and touched high of Rs 221 on the BSE. The trading volumes on the counter jump by over six-folds with a  combined 9.57 million shares changing hands on the counter so far on both the exchanges.