Union financial institution of India benefited from a tax write-back of Rs251.18 crore, which stored it from posting a internet loss. photograph: Mint
Mumbai: Union financial institution of India on Friday stated a 78.34% fall in net profit inside the Marchregion because it set apart extra money to cover the chance of loan default and earned much lessinterest and non-interest income.
The bank mentioned a earnings of Rs.96.12 crore within the sector, as compared to Rs.443.77 crore ayear in the past.
net interest income (NII), or the middle profits a bank earns by giving loans, fell 1.71% to Rs.2,084.69crore from Rs.2,121.05 crore remaining 12 months identical quarter.
The bank benefited from a tax write-again of Rs.251.18 crore, which saved it from posting a internet loss.within the year–in the past sector, it paid Rs.198.fifty eight crore in tax.
Non-hobby profits fell 12.8% to Rs.996.39 crore from Rs.1,143.07 crore within the identical duration lastyear.
Gross non-performing assets (NPAs) rose eighty five.forty nine% to Rs.24,a hundred and seventy.89 crore on the end of the March quarter from Rs.13,030.87 crore a year ago. The bank said gross NPA of Rs.18,495.16 1 / 4 in the past.
Provisions and contingencies jumped fifty five% to Rs.1,564.sixty seven crore from Rs.1,009.ninety fourcrore a year ago. inside the December quarter, the financial institution pronounced Rs.1,237.65 crore of provisions.
In December, the Reserve bank of India (RBI) carried out an asset satisfactory evaluate throughout the banking region, following which banks had been asked to realize seen harassed assets as non-actingassets (NPAs).
RBI additionally requested banks to make good enough provisions for these harassed assets over the0.33 and fourth quarters of the financial year that resulted in March.
As a percent of general loans, gross NPAs stood at eight.7% on the cease of the March zone compared to 7.05% inside the previous region and 4.96% a yr in the past.
internet NPAs stood at 5.25% compared to 4.07% in the preceding sector and a pair of.71% within theidentical area remaining year.
On Friday, Union financial institution of India stocks closed at Rs.115.ninety five at the BSE, down 1.9% from preceding near, while the benchmark index Sensex fell 1.2% to close at 25,489.fifty seven factors.
