Union Bank of India Q3 net profit zooms to Rs 575 cr as bad loans shrink to 14.86%

New Delhi: Union Bank of India (UBI) on Monday said its standalone net profit for December quarter 2019 grew manifold to Rs 574.58 crore due to fall in provisioning for bad loans. The state-owned lender had clocked a profit of Rs 153.21 crore in October-December 2018. Income rose to Rs 10,741.21 crore during the latest quarter from Rs 9,572.58 crore in the year-ago period, UBI said in a regulatory filing.

#3QWithCNBCTV18 | Union Bank reports Q3 earnings pic.twitter.com/4bkNSzik2s

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Gross non-performing assets (NPAs) fell to 14.86 percent (Rs 49,923.58 crore) of gross advances by December-end 2019 from 15.66 percent (Rs 49,713.34 crore) at the end of the same month in the previous year. Net NPAs too fell to 6.99 percent (Rs 21,510.28 crore) from 8.27 percent (Rs 24,141.64 crore). Provisioning for bad loans during the quarter also came down to Rs 1,569.90 crore from Rs 2,139.13 crore a year ago, it said.

#3QWithCNBCTV18 | Union Bank's asset quality in Q3 is nearly unchanged from last quarter pic.twitter.com/cFngfcBQgH

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On consolidated basis, the bank’s net profit stood at Rs 554.36 crore during the quarter, up from Rs 182.97 crore in the year-ago period. Income grew to Rs 10,985.23 crore from Rs 9,756.92 crore. The bank said it restructured 41,086 MSME accounts to the tune of Rs 1,012.39 crore during the quarter. On merger, it said the bank’s board in a meeting held in September 2019 has considered and accorded in-principle approval for amalgamation of Andhra Bank and Corporation Bank into Union Bank of India. Provision coverage ratio of the bank as on 31 December, 2019 is 67.42 percent, it added. Union Bank of India stock closed at Rs 50.95 on the BSE, up 4.19 percent from the previous close.