Union Bank Q4 Net drops 78% on higher bad loan provisioning

State-owned Union Bank of India today posted 78 per cent decline in its net profit at Rs 96.1 crore for the fourth quarter ended March 31 on account of higher provisioning for bad loans.
The bank had clocked a net profit of Rs 443.77 crore in the January-March quarter of the previous financial year.
Provisioning other than tax and contingencies rose to Rs 1,564.6 crore during the quarter, from Rs 1,009 crore in the year ago period.
Gross non-performing assets (NPA) of the bank rose to 8.70 per cent at the end of March from 4.96 per cent in the same period, a year ago.

Its net NPAs also increased to 5.25 per cent from 2.71 per cent at the end of March 2015.
Total income of the bank decreased to Rs 8,884.4 crore during the fourth quarter, from Rs 9,383.71 crore in the year-ago period.
For the full 2015-16 fiscal, the bank reported a net profit of Rs 1351.6 crore, down 24 per cent at over Rs 1,781.64 crore in the previous financial year.
However, the total income marginally increased to Rs 35,830.5 during the year from Rs 35,606.96 in 2014-15.