Union Bank of India reported a 68% Y-o-Y slip in its fiscal first quarter net profit. Net profit went down to Rs 166.32 crore in the quarter ended 30 June from Rs. 518.78 crore a year ago because of higher provisions. As per Bloomberg poll of 19 analysts, the bank was expected to post a net profit of Rs. 223.90 crore for the quarter ended June. Net interest income, or the chief income a bank earns by giving loans, slipped marginally to Rs. 2,102.25 crore as compared Rs. 2,130.17 crore a year ago. Provisions more than doubled to Rs. 1,352.96 crore in June quarter from Rs. 642.41crore a year ago, but provision coverage ratio is as seen at 50% for the June ended quarter against to 58.05% last year. This is mainly because gross nonperforming assets (NPAs) rose from Rs. 14,143.62 crore in June ’15 to Rs. 27,280.90 crore this June whereas provisions increased by mere Rs. 710.55 crore for the same period. Gross NPAs jumped 12.86% to Rs27, 280.90 crore at the end of the June quarter from Rs. 24,170.89 crore in the March quarter. As a percentage of total loans, gross NPAs stood at 10.16% at the end of the June quarter, compared with 8.70% in the previous quarter and 5.53% in the year-ago quarter.
Net NPAs was seen at 6.16% in the June quarter as compared with 5.25% in the last quarter and 3.08% in the corresponding quarter a year ago. Capital adequacy ratio as per Basel three norms is observed at 10.75% for first financial quarter.
The stock was slightly affected because of this, and on this day the Union Bank share price is currently trading at Rs. 127.90 down by 6.71 %. The stock touched its day’s high and low at Rs. 134 and Rs. 127.10 respectively. The stock opened at Rs. 133.10 with a decrease of 9.20 points.
Union Bank of India share price forecast
Union Bank of India is one of the top 500 shares as analyzed by Dynamic Levels for this quarter among the 1700 shares of NSE. Union Bank share price met its 52 week high on 18th August ’15 at Rs. 222.70 while its 52 week low is seen at Rs. 104.00 at Rs. 18th August ’15.
For further details refer to Union Bank of India share price history.
For further details refer to Union Bank of India share price history.
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