Mumbai: Union Bank on Friday said its first-quarter net profit dropped 12.67% on the back of lower other income and higher provisioning.
In its investor presentation, the bank also provided the comparable numbers consolidating those of Canara Bank and Syndicate Bank, when they were separate entities. These two banks merged on 1 April and the June quarter numbers reflect the financials of the amalgamated entity.
The bank posted a net profit ₹332.74 crore for the three months ended 30 June, against ₹224.43 crore in the year-ago period. A Bloomberg poll of 3 analysts had estimated a loss of ₹1540.30 crore.
Provisions during the quarter rose 4.61% to ₹3701 crore, from ₹3538 crore a year ago. During the January-March quarter, the bank had set aside ₹3501.69 crore in provisions.
Net interest income, or the difference between interest earned on loans and that paid on deposits, grew 17.10% to ₹6403.19 crore, against ₹5468 crore in the corresponding period last year.
Other income, including core fee income, fell 22.91% to ₹1462.46 crore in the three months, from ₹1897 crore a year ago.
Gross non-performing assets (NPAs), as a percentage of total advances, were at 14.95% in the June quarter, compared with 14.59% in the March quarter, and 15.59% in the year-ago period.
Post provision, net NPA ratio was at 4.97%, against 5.22% in the January-March quarter and 6.47% in the year-ago quarter.
On Friday, shares of the bank rose 1.84% to close at ₹30.45 on the BSE, while the Sensex gained 0.56% to close at 38,434.72.
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