Bad loans cut Union Bank’s first quarter net profit

August 06, 2016 11:50 pm | Updated 11:50 pm IST - NEW DELHI:

Union Bank of India’s net profit decreased by 68 per cent to Rs.167 crore in the first quarter compared to the year-earlier period due to higher provisions for bad loans.

The bank reported Rs.3,603 crore of fresh slippages during the reporting period compared with Rs.1,508 crore in the year-earlier period.

As a result, provisions for bad loans almost trebled to Rs.1,347 crore from Rs.479 crore.On a sequential basis, slippages and provisioning were lower this quarter and the management indicated the worst could be over so far as asset quality issue was concerned.

Gross non-performing asset ratio of the bank rose to 10.16 per cent as for the three-month period ended June.“Gross NPA ratio will come down to 8.5 per cent by the end of the current financial year,” said Arun Tiwari, Chairman and Managing Director, Union Bank of India.

Slippages have also impacted the bank’s domestic net interest margin which was 2.36 per cent, lower by 10 basis points. Mr. Tiwari said net income margin was expected to increase to 2.5 per cent by the year end.

In the current financial year, Union Bank is expecting 9-10 per cent growth in loans and 6-7 per cent in deposits.

Repco Home Finance

Repco Home Finance has reported a net profit of Rs. 39.53 crore in the quarter ended June 30, 2016, against Rs.30.24 crore in the corresponding period of the previous year, a growth of 31 per cent. Total income from operations was higher at Rs.246.91 crore against Rs.200.10 crore. Net interest income has increased to Rs.83.97 crore from Rs.66.37 crore. The company sanctioned loans worth Rs.678.33 crore and disbursed Rs.599.70 crore in the period under reference. The loan book stood at Rs.7,959.32 crore as at June 30, 2016, registering a growth of 25 per cent over the same period last year, according to a company release. The capital adequacy ratio of the company as on June 30, 2016, stood at 20.05 per cent consisting entirely of Tier-I capital, as against the minimum stipulated requirement of 12 per cent, the release added.

PTI reports:

Tata Coffee

Tata Coffee on Saturday reported an over two-fold jump in consolidated net profit at Rs.46 crore for the quarter ended June 30, 2016. Its net profit was Rs.21 crore in the year-earlier period. “Consolidated group net profit, post non-controlling interest, is higher at Rs.46 crore compared to Rs.21 crore in the corresponding quarter of the previous year, an increase of 115 per cent,” according to a statement from Tata Coffee.

The company reported 21 per cent increase in its total income from operations at Rs.426 crore in the first quarter of this fiscal compared with Rs.352 crore. The increase in income was “driven by improved performance of both Tata Coffee and its overseas subsidiary Eight O’ Clock Coffee,” it said.

JK Cement

JK Cement on Saturday reported manifold jump in standalone net profit to Rs.60.85 crore for the quarter ended June 30, 2016. The company’s net profit in the corresponding period of the previous fiscal was Rs.1.05 crore, JK Cement said in a BSE filing. The company’s net sales increased to Rs.886.70 crore from Rs.812.09 crore in the year-ago period. The company is the second largest manufacturer of white cement in the country with an annual capacity of six lakh tonnes, according to its website.

Mangalam Cement

Mangalam Cement posted a net profit of Rs.22.58 crore for the quarter ended June 30, 2016 against a net loss of Rs.18.91 crore in the April-June quarter of the last fiscal, the company said in a filing with the BSE. The company’s total income from operations increased to Rs.225.17 crore from Rs.213.41 crore in the year-ago period. Its total expenses declined to Rs.186.12 crore from over Rs.224.07 crore in the year-ago period.

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