Union Bank reports Rs 1.3 bn profit in Q1; net interest income up 17.1%

The bank's provision coverage ratio improved for the June quarter to 56.49 per cent, from 51.13 per cent in the same period last year

Public sector lender Union Bank of India has posted a net profit of Rs 1.3 billion after its non performing assets (NPAs) surged and provisioning fell. This marked a rise of 11 per cent in profit against Rs 1.17 billion in the same period last year. “We are pleased to announce a profit after three quarters of losses,” said Rajkiran Rai, MD & CEO, Union Bank of India. He added that the profitability would be sustainable for the coming quarters, unless there are unforeseeable circumstances. 

Net interest income for the June quarter grew by 17.1 per cent to Rs 26.26 billion,