Business

Union Bank profit surges to ₹575 crore on recoveries

Bank gets ₹2,000 cr. from 3 accounts

Recoveries from Essar Steel and Ruchi Soya helped State-run lender Union Bank of India to report ₹575 crore in net profit for the quarter ended December 31 compared with ₹153 crore in the year-earlier period.

Net interest income grew 25.7% to ₹3,134 crore while non-interest income growth was almost flat at ₹112 crore.

Domestic net interest margin (NIM) improved to 2.55% compared with the 2.23% in Q3 FY19.

“We were helped by some good recoveries which came from Essar Steel, Ruchi Soya Industries and Prayagraj Power Generation Company. We recovered close to ₹2,000 crore from these three accounts,” said Rajkiran Rai G., managing director and chief executive officer of the bank.

Cash Recoveries increased 261.4% year-on-year to ₹2,255 crore .

“Our total recoveries and upgradation for the nine months has been ₹4,910 crore. We are expecting another ₹3,000 crore in this quarter both from the NCLT (National Company Law Tribunal) and non-NCLT accounts. So, we can close the year at about ₹8,000 crore,” he added.

Gross slippages remained elevated at ₹5,112 crore compared with the ₹2,983 crore reported during the same period of the previous year.

Gross NPAs as at December end stood at 14.86% compared with 15.66% a year ago.

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Printable version | Mar 29, 2020 6:42:11 PM | https://www.thehindu.com/business/union-bank-profit-surges-to-575-cr-on-recoveries/article30785514.ece

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