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Union Bank of India fiscal Q1 net profit increases YOY

Union Bank of India reported a year-over-year increase in net profit for the quarter ended June 30.

The bank said net profit for the fiscal first quarter rose to 1.30 billion Indian rupees, or 1.11 rupees per share, from 1.17 billion rupees, or 1.70 rupees per share, in the prior-year period.

Net interest income rose to 26.26 billion rupees from 22.43 billion rupees. The bank's domestic net interest margin improved to 2.34% from 1.99% in the previous quarter. Its global NIM improved to 2.26% from 1.90% in the previous quarter and 2.06% in the prior-year quarter.

Provisions for nonperforming loans jumped to 22.29 billion rupees from 17.04 billion rupees, of which provisions for nonperforming assets were 18.03 billion rupees, compared to 18.76 billion rupees in the prior-year period.

The bank said income on investments rose to 23.52 billion rupees from 21.48 billion rupees.

The bank's gross nonperforming asset ratio as of June 30 was 16.00%, compared to 15.73% as of March 31 and 12.63% as of June 30, 2017. Net NPA ratio was 8.70%, compared to 8.42% at the end of the previous quarter and 7.47% at the end of the prior-year period.

As of June 30, the bank's capital adequacy ratio under Basel III stood at 11.45%, down from 11.50% in the previous quarter and from 12.01% a year earlier. Its common equity Tier 1 ratio and additional Tier 1 ratio clocked in at 7.50% and 1.49% respectively, compared to 7.73% and 1.51% in the year-ago quarter.

As of Aug. 9, US$1 was equivalent to 68.76 Indian rupees.