{"id":16629,"date":"2020-08-21T21:49:27","date_gmt":"2020-08-21T21:49:27","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=16629"},"modified":"2020-08-21T21:49:27","modified_gmt":"2020-08-21T21:49:27","slug":"union-bank-q1-net-profit-down-12-6-on-higher-provisions","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=16629","title":{"rendered":"Union Bank Q1 net profit down 12.6% on higher provisions"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-2062111\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/1-762.jpg\" alt=\"However, the operating profit of the bank increased 2.9% Y-o-Y to Rs 4,034 crore, compared with Rs 3,918 crore in the same quarter last year.\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-2062111\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/1-762.jpg\" alt=\"However, the operating profit of the bank increased 2.9% Y-o-Y to Rs 4,034 crore, compared with Rs 3,918 crore in the same quarter last year.\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2062111\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/1-762.jpg\" alt=\"However, the operating profit of the bank increased 2.9% Y-o-Y to Rs 4,034 crore, compared with Rs 3,918 crore in the same quarter last year.\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/08\/1-762.jpg 660w, https:\/\/images.financialexpress.com\/2020\/08\/1-762-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/08\/1-762-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/08\/1-762-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/08\/1-762-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/08\/1-762-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/08\/1-762-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">However, the operating profit of the bank increased 2.9% Y-o-Y to Rs 4,034 crore, compared with Rs 3,918 crore in the same quarter last year.<\/span><\/figure>\n<\/div>\n<p>In the first quarter after merger with <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/andhra-bank-stock-price\/\" rel=\"noopener noreferrer\">Andhra Bank<\/a> and <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/corporation-bank-stock-price\/\" rel=\"noopener noreferrer\">Corporation Bank<\/a>, public sector lender <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/union-bank-of-india-stock-price\/\" rel=\"noopener noreferrer\">Union Bank of India<\/a> on Friday reported a 12.6% year-on-year (Y-o-Y) decline in the net profit for the combined entity to Rs 333 crore in the June quarter due to increased provisions and fall in other income.<\/p>\n<p>However, the operating profit of the bank increased 2.9% Y-o-Y to Rs 4,034 crore, compared with Rs 3,918 crore in the same quarter last year.<\/p>\n<p>Provisions increased 4.6% Y-o-Y to Rs 3,701 crore in the June quarter, out of which lender has provided Rs 678 crore on account of Covid-19. The other income fell 23% to Rs 1,462 crore in the quarter under review. The bank released consolidated numbers of the combined entity after its merger with Andhra Bank and Corporation Bank from April 1, 2020.<\/p>\n<p>Rajkiran Rai G, managing director (MD) and chief executive officer (CEO), Union Bank of India, said, \u201cThe board of the bank has approved a policy on Friday for resolution of personal loans.\u201d The banking regulator had earlier allowed restructuring of personal loans, including granting moratorium for the borrowers impacted by Covid-19. \u201cCurrently, 35% of the retail book is under moratorium, we expect lesser number of borrowers to opt for restructuring,\u201d Rai said.<\/p>\n<p>Loans under moratorium witnessed a little spike in the second phase. Total 28% of the term loan book was under repayment break as on June 30, compared to 25% in the first phase of moratorium.<\/p>\n<p>Total income remained flat at Rs 19,891 crore, compared with Rs 19,743 crore in the same quarter last year. Net interest income (NII) \u2014 the difference between interest earned and interest expended \u2014 stood at Rs 6,403 crore, up 17.1% y-o-y.<\/p>\n<p>The bank\u2019s net interest margin (NIM) fell 7 basis points (bps) sequentially to 2.52% in the quarter under review.<\/p>\n<p>The bank showed mixed numbers in terms of asset quality. Gross non-performing assets (NPAs) as a percentage of total advances increased 36 bps on a sequential basis to 14.95%. However, the net NPA ratio declined 25 bps to 4.97%, compared to 5.22% in the March quarter. The provision coverage ratio improved to 79.87% as on June 30, compared to 73.38% in the year-ago period.<\/p>\n<p>The capital adequacy ratio stood at 11.62% at the end of the June quarter. The bank\u2019s board had already approved raising capital of up to Rs 10,300 crore in the current financial year.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" alt=\"\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/union-bank-q1-net-profit-down-12-6-on-higher-provisions\/2062108\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>However, the operating profit of the bank increased 2.9% Y-o-Y to Rs 4,034 crore, compared with Rs 3,918 crore in the same quarter last year. In the first quarter after merger with Andhra Bank and Corporation Bank, public sector lender Union Bank of India on Friday reported a 12.6% year-on-year [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16630,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-16629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/08\/1-762.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/16629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16629"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/16629\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/16630"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}