MUMBAI: Union Bank is back into the black. It reported a net profit of Rs 138 crore for the quarter ended September 30 compared to a loss of Rs 1531 crore in the same period last year on account of improved recoveries.
“This should be the new normal for Union Bank” said Union Bank CEO Rajkiran Rai “ Things are going to stabilise from now”. The banks stock closed at Rs 69.75 a share at the BSE, 12.5 higher over previous close.
Cash recovery & upgradation during July – September 2018 increased by 180.4 per cent to Rs 1615 crore as against Rs 576 crore during the same period a year ago.
The banks net interest Income -the difference between interest income and interest expenses-for July-September18 increased by 7.5 per cent to Rs 2494 crore from Rs 2321 crore in the same period a year ago. for July-September 2017.
Gross NPA stood at 15.74 per cent as on September 30, 2018 as against 16.00 per cent as on June 30, 2018. The bank has Rs 1100 crore to the troubled IL&FS group. But around 80 per cent of this exposure in a standard exposure, according to Mr Rai.
The bank is also buying NBFC loan portfolio to help them tide over the liquidity crisis and has budgeted to buy Rs 5000 crore worth portfolio in the third quarter ending December 2018.
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