Union Bank Q1 net up 73%

Union Bank of India reported a 73% increase in net profit to ₹225 crore for the quarter ended June 30, 2019 due to lower provisioning for bad loans.

Provision for bad loans fell to ₹1,431 crore during April-June 2019, from ₹1,803 crore in the year- ago quarter.

Asset quality improved with gross non-performing assets (NPAs) fell to 15.18% of gross advances as on June 30, 2019 from 16% a year ago though it increased marginally sequentially.

While net interest income declined to ₹2,519 crore from ₹2,626 crore, treasury income grew 29.7% to ₹345 crore.

Slippages to bad loans were ₹3,090 crore as compared to ₹4,652 crore in the same period of the previous year.

Commenting on elevated level of slippages, Union Bank MD & CEO Raj Kiran Rai G said: “Recovery was not up to expectations. Cash recovery was ₹770 crore, which was below normal.”