Union Bank of India slips on posting Q4 net loss of Rs 2,503 cr

Union Bank of India fell 4.03% to Rs 34.50 after the bank reported net loss of Rs 2,503.18 crore in Q4 March 2020, lower than net loss of Rs 3,369.23 crore in Q4 March 2019.

Total income jumped 17.5% to Rs 11,306.99 crore in Q4 March 2020 over Rs 9,621.01 crore in Q4 March 2020. Pre-tax loss stood at Rs 3,359.03 crore in Q4 March 2020 as against pre-tax loss of Rs 4,035.95 crore incurred in Q4 March 2019. The Q4 result was announced after market hours yesterday, 23 June 2020.

Net Interest Income for the Q4 FY20 soared 10.6% to Rs 2,878 crore as compared to Rs 2,602 crore in Q4 FY19. Other income for the Q4 FY20 surged 58.6% to Rs 2,018 crore as compared to Rs 1,272 crore in Q4 FY19. Operating profit for Q4 FY20 jumped 53.3% to Rs 2,653 crore as compared to Rs 1,730 crore in Q4 FY19.

Provisions and contingencies dropped 39.27% to Rs 3,501.69 crore in Q4 March 2020 over Rs 5,766.15 crore in Q4 March 2019. The provision coverage ratio of the bank was at 66.24% as on 31 March 2020.

Andhra Bank and Corporation Bank have been amalgamated with Union Bank of India from 1 April 2020. The lender said that it has made an additional harmonisation provision for the quarter and year ended 31 March 2020, amounting to Rs 2,509.98 crore and the same is disclosed as exceptional items in the financial results.

Gross non-performing assets (NPAs) stood at Rs 49,085.30 crore as on 31 March 2020 as against Rs 49,923.58 crore as on 31 December 2019 and Rs 48,729.15 crore as on 31 March 2019. The ratio of gross NPAs to gross advances stood at 14.15% as on 31 March 2020 as against 14.86% as on 31 December 2019 and 14.98% as on 31 March 2019. The ratio of net NPAs to net advances stood at 5.49% as on 31 March 2020 as against 6.99% as on 31 December 2019 and 6.85% as on 31 March 2019.

Global business grew 7.6% Y-o-Y (year-on-year) to Rs 7,97,589 crore as on 31 March 2020. Total global deposits advanced 8.4% Y-o-Y to Rs 4,50,668 crore as on 31 March 2020. Global gross advances gained 6.6% Y-o-Y to Rs 3,46,921 crore as on 31 March 2020. CASA (Current Account-Savings Account) base increased by 119 bps Q-o-Q (quarter-on-quarter) to 35.59% as on 31 March 2020.

Union Bank of India offers products and services in three categories: deposits, loans and advances, and remittances and collections. Its segments include treasury operations, corporate and wholesale banking, retail banking operations and other banking operations.

As of 31 March 2020, the Government of India held 86.75% stake in the bank.

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