Improvement in asset quality and lower provisions helped Union Bank of India post a 12% year on year increase in net profit at Rs 4,115 crore in the quarter ended June. However, lower net interest income capped the bottomline growth.
Provisions and contingencies of the bank fell 40% on year to Rs 1,664 crore in the June quarter, leading to improvement in asset quality.
The public sector bank's gross non-performing assets ratio fell to 3.52% as of June end as against 3.6% in the prior quarter. Net NPA ratio also declined slightly to 0.62% from 0.63% in the March quarter.
Net interest income of the bank declined by 3% on year to Rs 9,113 crore. Operating profit of the bank also lagged, down by over 11% on year to Rs 6,909 crore.
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