Union Bank of India pares gains as gross NPA ratio rises in Q2

Union Bank of India rose 0.71% to Rs 225.80 at 12:34 IST on BSE, paring earlier gains as the bank's ratio of gross NPAs to gross advances stood at 4.69% as on 30 September 2014, up from 4.27% as on 30 June 2014 and 3.64% as on 30 September 2013.

The Q2 result was announced during market hours today, 31 October 2014.

Meanwhile, the S&P BSE Sensex was up 396.60 points or 1.45% at 27,742.93.

On BSE, so far 9.28 lakh shares were traded in the counter as against average daily volume of 4.45 lakh shares in the past two weeks.

The stock was volatile. The stock rose as much as 4.03% at the day's high of Rs 233.25 so far during the day. The stock lost as much as 0.17% at the day's low of Rs 223.80 so far during the day.

Union Bank of India's ratio of gross non-performing assets (NPAs) to gross advances stood at 4.69% as on 30 September 2014, up from 4.27% as on 30 June 2014 and 3.64% as on 30 September 2013. The ratio of net NPAs to net advances stood at 2.71% as on 30 September 2014, up from 2.46% as on 30 June 2014 and 2.15% as on 30 September 2013.

Union Bank of India's net profit jumped 78.42% to Rs 371.34 crore on 11.06% growth in total income to Rs 8754.69 crore in Q2 September 2014 over Q2 September 2013.

The bank's domestic net interest margin (NIM) stood at 2.6% in Q2 September 2014 as against 2.68% in Q1 June 2014 and 2.62% in Q2 September 2013. Global NIM for Q2 September 2014 was 2.53% as against 2.6% in Q1 June 2014 and 2.54% in Q2 September 2013.

Net interest income (NII) rose 6.7% to Rs 2085 crore in Q2 September 2014 over Q2 September 2013. Non interest income surged 32.9% to Rs 812 crore in Q2 September 2014 over Q2 September 2013.

The bank's provisions and contingencies declined 16.15% to Rs 785.41 crore in Q2 September 2014 over Q2 September 2013. Provision coverage ratio stood at 57.97% as on 30 September 2014, as against 58.92% as on 30 June 2014 and 60.43% as on 30 September 2013.

Union Bank of India's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 10.3% as on 30 September 2014 as against 10.41% as on 30 June 2014 and 9.72% as on 30 September 2013.

Government of India holds 60.47% stake in Union Bank of India (as per the shareholding pattern as on 30 September 2014).

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