Mumbai: Union Bank on Friday said its first-quarter net profit rose 73.25% on the back of lower provisioning. The bank posted a net profit ₹224.43 crore for the three months ended 30 June, against ₹129.54 crore in the year-ago period. A Bloomberg poll of 9 analysts' had estimated a loss of ₹183 crore.
Provisions during the quarter decreased 33.63% to ₹1,519.34 crore, from ₹2,289.07 crore a year ago. During the January-March quarter, the bank had set aside ₹5,766.15 crore in provisions.
Net interest income, or the difference between interest earned on loans and that paid on deposits, decreased 4.11% to ₹2,518.19 crore, against ₹2,626.12 crore in the corresponding period last year.
Other income, including core fee income, dropped 18.08% to ₹989.52 crore in the three months, from ₹1,207.95 crore a year ago.
Gross non-performing assets (NPAs), as a percentage of total advances, were at 15.18% in the June quarter, compared with 14.98% in the March quarter, and 16% in the year-ago period.
Post provision, net NPA ratio was at 7.23%, against 6.85% in the January-March quarter and 8.70% in the year-ago quarter.
On Friday, shares of the bank fell 1.30% to close at ₹64.70 on the BSE, while the Sensex gained 0.27% to close at 37,118.22.