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Union Bank of India Q1 results: Profit rises to Rs 341 crore, revenue doubles

Union Bank of India Q1 results: Profit rises to Rs 341 crore, revenue doubles

Union Bank of India on Friday posted a consolidated net profit of Rs 340.95 crore for the first quarter ended June 2020

Union Bank of India Union Bank of India

Union Bank of India on Friday posted a consolidated net profit of Rs 340.95 crore for the first quarter ended June 2020 as against Rs 230.12 crore in the corresponding period of last fiscal. State-owned bank's total income stood at Rs 20,487.01 crore during the Q1 of fiscal year 2020-21 as against Rs 10,053.68 crore in the same period a year ago, the bank said in a regulatory filing.

The figures related to June 2019 are of pre-amalgamated period, hence not comparable with post-amalgamation financials for the quarter ended June 2020, Union Bank of India said. Amalgamation of Andhra Bank and Corporation Bank into Union Bank came into effect from April 1, 2020.

On the asset quality front, the gross non-performing assets (NPAs) of the bank plunged a tad to 14.95 per cent of the gross advances as against 15.18 per cent by the end of June 2019. Net NPAs were down substantially at 4.97 per cent from 7.23 per cent.

"In terms of RBI guidelines relating to 'Covid 19 Regulatory Package' on Asset Classification and Provisioning dated March 27, 2020, April 17, 2020, and May 23, 2020, the Bank has extended moratorium on payment of instalment and/or interest as applicable, falling due between March 1, 2020 to August 31, 2020, to eligible borrowers classified as standard, even if overdue, as on February 29, 2020, without considering the same as restructuring. The moratorium period wherever granted, shall be excluded by the Bank from the number of days past due for the purpose of asset classification in terms of IRAC norms," the bank said.

Shares of Union Bank of India today closed the intraday trade 1.84 per cent up at Rs 30.45 apiece compared to the previous closing on the BSE.

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