Union Bank Q2 net loss at Rs 1,194 cr on higher provisioning for bad loans

However, net NPAs were down at 6.98%, against 8.42%

State-owned Union Bank of India on Thursday reported a net loss of Rs 1,194 crore for July-September due to higher provisioning.

The bank had a net profit of Rs 139 crore in the same quarter of 2018-19. Total income for the September quarter rose to Rs 10,556.57 crore from Rs 9,438.26 crore in the same period a year ago, the bank said in a regulatory filing.

Its provisioning for bad loans jumped to Rs 3,328.30 crore for the quarter from Rs 1,710 crore parked aside for the same a year ago. Overall provisioning was of Rs 3,858.75 crore as against Rs 1,715.55 crore.

The asset quality of the bank continued to remain in the bad territory as the gross non-performing assets (NPAs) stood at 15.24 per cent of the gross loans at the end of September 2019, as compared to 15.74 per cent a year ago.

However, net NPAs were down at 6.98 per cent, against 8.42 per cent.

Shares of Union Bank closed at Rs 52.30 apiece, down 0.76 per cent from the previous close.