Union Bank of India posts surprise first-quarter profit at Rs 1.30 bn

Union Bank of India posted a surprise first-quarter profit on Friday as the state-controlled lender set aside lower provisions for bad loans and earned more from interest-bearing assets.

Net profit was Rs 1.30 billion ($18.88 million) in the quarter ended June 30, compared with a profit of Rs 1.17 billion a year ago, the bank said.

Analysts on an average had expected a loss of Rs 10.27 billion, according to Thomson Reuters.

The bank said interest earned rose 6.7 per cent to Rs 87.01 billion.