Union Bank Q3 results: Net profit up 41% QoQ at Rs 727 crore

Union Bank of India on Friday reported 41 per cent quarter-on-quarter (QoQ) increase in its net profit at Rs 727 crore for October-December quarter of the ongoing financial year. The net profit stood at Rs 517 crore in the corresponding quarter of previous year.

The state-owned bank said that the results for the quarter and nine month ending December 31, 2020 also include operations of erstwhile Andhra Bank and Corporation Bank, which amalgamated with Union Bank on April 1, 2020. Hence the results for the quarter and nine months are not comparable with corresponding period of the previous year.

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The bank's net interest income during December quarter stood at Rs 6,590 crore, while net interest margin was at 2.94 per cent. Its deposit base stood at Rs 8.82 lakh crore as on December 31, 2020, while current account and savings account (CASA) ratio was at 35.4 per cent.

On asset front, Union Bank's gross NPA (non-performing asset) ratio stood at 13.49 per cent, while net NPA ratio was at 3.27 per cent. However, if not for the Supreme Court order, which said that accounts not declared as NPA till August 31, 2020, should not be declared NPA till further orders, the bank's gross and net NPA ratios would have been at 15.28 per cent and 5.02 per cent, respectively.

"Pending final outcome, as a matter of prudence, the bank has made a provision of Rs 1,535.83 crore. The bank has also as a matter of prudence made a provision of Rs 250 crore towards the interest receivable on these borrower accounts on estimated basis," Union Bank said. Its provision coverage ratio was at 86 per cent during the quarter as against 83 per cent in the preceding July-September quarter.

On a consolidated basis, the bank's net profit during December quarter was at Rs 719 crore. Net profit stood at Rs 554 crore in the year-ago quarter and Rs 534 in September quarter.

Shares of Union Bank of India on Friday closed 5.25 per cent higher at Rs 31.05 on the BSE.

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