Mumbai: Union Bank of India on Wednesday reported a 32% increase in net profit in the December quarter on increase in other income.
Net profit for the quarter increased to Rs104 crore compared with Rs78.54 crore a year ago. According to estimates of 14 Bloomberg analysts, the bank was expected to post a net profit of Rs227.40 crore.
Net interest income (NII), or the core income a bank earns by giving loans, rose 7.01% to Rs2,136.62 crore in the December quarter from Rs1,996.51 crore last year.
Other income increased 50% to Rs1,339.67 crore in the third quarter from Rs892.69 crore in the same period last year.
Gross non-performing assets (NPAs) at Union Bank rose 3.07% to Rs32,402.74 crore at the end of the December quarter from Rs29,862.05 crore in the September quarter. As a percentage of total loans, gross NPAs were 11.7% at the end of the December quarter compared with 10.73% in the previous quarter and 7.05% a year ago.
Provisions and contingencies increased 27.22% to Rs1,581.85 crore in the third quarter from Rs1,243.30 crore a quarter ago. Net NPAs rose to 6.95% in the December quarter compared with 6.39% in the previous quarter and 4.07% in the same quarter last year.
Shares of Union Bank lost 1.13% to close at Rs166.75 per share on Wednesday on the BSE, while the benchmark index, Sensex lost 0.16% to close at 28289.92 points.