Union Bank net profit down 68% in Q1

State-run lender Union Bank on Saturday reported a 68% decrease in net profit to Rs 166.32 crore in the quarter ended June 30, compared with Rs 518.78 crore in the corresponding period last year.

The net profit in the quarter, however, was 72.2% higher over the January-March period. Global business in the quarter grew by 4.2% from Rs 5,82,817 crore as on June 30, 2015, to Rs 6,07,280 crore as on June 30, 2016.

Net NPA ratio was at 6.16% as on June 30, 2016, as against 3.08% as on June 30 last year. Capital adequacy ratio of the bank under Basel III stood at 10.75% in the quarter ended June 30, increase over 10.14% in June 2015.

The bank said its domestic net interest margin (NIM) stood at 2.36% for April-June 2016, compared with 2.46% in the year-ago period. Net interest income for April-June period was at Rs 2,103 crore as against Rs 2,130 crore in the same period last year.

Under the Pradhan Manrti Jan Dhan Yojana (PMJDY), the bank has opened more than 58 lakh accounts having balance of Rs 892 crore upto June 30, 2016. The centre has announced capital infusion of Rs 721 crore during the current fiscal.