State-run lender Union Bank of India reported a rise in gross non-performing assets to 15.66% of total advances for the quarter ended December 31, from 13.03% in the same quarter of the previous year. Net NPAs also rose to 8.27% from 6.96% a year ago.
The bank reported a net profit of ₹153 crore for the latest quarter compared with the ₹1,250-crore loss in the year-earlier period. This is the third straight quarterly profit that the bank has made. Provisions for non-performing assets in Q3 declined to ₹2,139 crore compared with ₹2,521 crore in the year-ago period.
Net interest income in the quarter was at ₹2,493 crore, marginally down from ₹2,548 crore while non-interest income grew 25.4% to ₹1,095 crore. The rise in non-interest income is due to profit on sale of investments of ₹110 crore.
The net interest margin was steady at 2.23% year-on-year, and rose 5 basis points sequentially. The bank’s shares fell 6.4% to ₹86.40 on the BSE.
