Net profit declined by 10% from last year to ₹4,249 crore. A CNBC-TV18 poll had projected a greater fall in profitability for the lender to ₹3,528 crore.
Union Bank’s asset quality improved on a sequential basis. Gross NPA at the end of the September quarter stood at 3.29% from 3.52% in June, while Net NPA improved to 0.55% from 0.62% in June.In absolute terms, Union Bank’s Gross NPA stood at ₹32,085 crore from ₹34,311 crore in June, while Net NPA improved to ₹5,209 crore from ₹5,873 crore in the previous quarter.
Provisions for the quarter reserved for Non-Performing Assets (NPAs) nearly halved to ₹526 crore from ₹1,152 crore.Union Bank’s advances grew by 5% from the same quarter last year, while deposits grew only by 1.9%.
Fresh slippages for the quarter declined to ₹1,985 crore from ₹2,199 crore in June. However, write-offs increased to ₹2,201 crore from ₹2,076 crore in June.
However, the slippages within the agriculture segment increased with total slippages at ₹809 crore at the end of the September quarter, from ₹699 crore in June. Slippages within retail, MSME and other segments saw improvement.
This is despite the overall Agri portfolio of the bank declining to ₹1.68 lakh crore, from ₹1.91 lakh crore during the same quarter last year.
Cash recoveries stood at ₹1,113 crore at the end of the September quarter, while upgradations stood at ₹1,0-63 crore. Both parameters improved from the June quarter.
Shares of Union Bank of India are currently fluctuating between gains and losses, currently trading little changed at ₹146.38. The stock is up 6% in the last one month and has extended its year-to-date advance to 20%.
