Union Bank of India Q1 net up 12% at Rs 130cr

State-owned Union Bank of India today reported a net profit of Rs 130 crore in the first quarter of 2018-19, up 12 per cent from the year-ago period.

The bank had reported a net profit of Rs 116.58 crore in the same quarter of 2017-18.

Total income during the June quarter increased to Rs 9,908.76 crore as against Rs 9,567.69 crore in the same period a year ago, it said in a regulatory filing.

The interest income rose to Rs 8,700.81 crore from Rs 8,112.10 crore.

"The interest income for the quarter includes an amount of Rs 274.43 crore towards recovery of NPA in accordance with resolution plan approved by National Company Law Tribunal," it said.

On asset front there was a further dent with gross non-performing assets (NPAs) rising to 16 per cent of gross advances by June 30, 2018, as against 12.63 per cent at end-June 2017.

In value terms, gross NPAs or bad loans were Rs 50,972.64 crore by end of June this year as against Rs 37,286.33 crore year earlier.

Net NPAs were at 8.70 per cent of net advances (Rs 25,508.46 crore) as against 7.47 per cent (Rs 20,784.97 crore).

Union Bank of India said provisions and contingencies for the quarter rose to Rs 2,229.07 crore from Rs 1,703.71 crore year ago.

The assets of the bank stood at Rs 4.88 lakh crore as on June 30, 2018 up from Rs 4.48 lakh crore year ago period.

Domestic advances increased by 12.5 per cent to Rs 2.99 lakh crore as on June 30, 2018 from Rs 2.66 lakh crore year ago same period.

It also improved on its cost of funds standing at 4.81 per cent in June 2018 quarter as against 5.03 per cent year ago and 4.69 per cent for January-March 2018.

Cost to income ratio improved to 45.52 per cent in the first quarter of this fiscal from 48.63 per cent in March quarter.

Cash Recovery during the June 2018 quarter increased by 281.7 per cent to Rs 1,252 crore as against Rs 328 crore year ago, Union Bank said in a release.

Shares of the bank closed 4.10 per cent down at Rs 85.45 on BSE.