Public sector lender Union Bank of India’s profit before tax (PBT) rose over three times to Rs 582.4 crore in the third quarter of the current financial year (Q3FY20) on a substantial rise in net interest income and dip in provisions for bad loans.
The Mumbai-based lender had posted PBT of Rs 133.25 crore in Q3FY19.
Net profit stood at Rs 574.58 crore in the quarter, as against Rs 153.21 crore in Q3FY19.
Its stock closed 4.2 per cent higher at Rs 50.95 per share on the BSE.
The bank said in a statement that its net interest income (NII) saw an uptick of 25.7 per cent at Rs 3,134 crore in Q3FY20 from Rs 2,494 in the same quarter last financial year.
Global gross advances grew by 5.8 per cent YoY to Rs 3,36,064 crore driven by retail segment which increased at 10.0 per cent YoY as on December 31, 2019.
Its global deposits were up 10.6 per cent YoY to Rs 4,45,091 crore as on December 31, 2019. The share of low-cost savings account and current account (CASA) declined to 34.4 per cent in Q3FY20 from 35.5 per cent a year ago.
The asset quality of the public sector lender improved in the reporting quarter. Its gross non-performing assets (GNPA) stood at 14.86 per cent in Q3FY20, compared to 15.66 per cent in Q3FY19.
Provisions for bad loans (NPAs) declined to 1,570 crore in Q3FY20 from Rs 2,139 crore in Q3FY19. The provision coverage ratio on NPAs was 67.42 per cent in December 2019, compared to 58.48 per cent at December 31, 2018.
The capital adequacy ratio was at 14.71 per cent and Tier-1 capital adequacy ratio stood at 12.69 per cent on a standalone basis at the end of December 31, 2019.