Union Bank stock slumps over 6 pc as Q1 net dips

State-run Union Bank of India today slumped over six per cent on the bourses after the company reported 68 per cent decline in net profit for the first quarter.
The bank posted 68 per cent fall in net profit to Rs 167 crore in the first quarter ended June 30 on higher provisions for bad loans. It had reported a profit after tax of Rs 519 crore for the same period last year.
Following the muted earnings, shares of the state-run lender opened weak at Rs 132.75, then lost further ground and touched an intra-day low of Rs 127.20 on the BSE.

At the end of today's trading the shares were trading at Rs 128.25, down 6.49 per cent over its previous closing price on BSE. Following the decline the market capitalisation of the company fell to Rs 8,816.43 crore.
On NSE, the stock opened at Rs 133.10, then tanked 7.29 per cent to touch an intra-day low of Rs 127.10. The stock closed for the day at Rs 128.35, down 6.38 per cent.
"The degrowth in profit was on account of increase in provisions," bank's chairman and managing director Arun Tiwari had said.
The provision for bad loans increased to Rs 1,347 crore in the quarter from Rs 479 crore in the same period last year.

The bank's asset quality worsened in the April-June quarter with gross non-performing assets doubling to 10.16 per cent from 5.53 per cent in the year-ago period.