Union Bank of India net profit jumps 49% in Q3

 

State-owned Union Bank of India on Monday posted a 49 per cent jump in net profit to Rs 1,085 crore in the third quarter ended December 31. The bank had earned a net profit of Rs 727 crore in the corresponding quarter of the previous financial year.

Its total income during the October-December quarter of 2021-22 declined to Rs 19,453.74 crore from Rs 20,102.84 crore in the corresponding quarter of the previous financial year, Union Bank of India said in a regulatory filing.

On the asset quality front, the bank's gross non-performing assets (NPAs) fell to 11.62 per cent of the gross advances by the end of the December 2022 quarter, compared with 13.49 per cent by the end of December 2020.

However, net NPAs increased to 4.09 per cent, up from 3.27 per cent at the end of December 2020.

Provisions and contingencies declined significantly to Rs 2,549.58 crore, compared with Rs 5,210.50 crore a year ago.

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Union Bank of India profit jumps 3-fold in Q2

  

State-owned Union Bank of India on Tuesday reported a nearly three-fold jump in its standalone net profit to Rs 1,526.12 crore for the September 2021 quarter. The lender had posted a net profit of Rs 516.62 crore in the corresponding quarter of the previous financial year.

Its total income during July-September 2021 rose to Rs 20,683.95 crore as compared with Rs 20,182.62 crore in the year-ago period, the bank said in a regulatory filing.

Provisionings for bad loans and contingencies fell to Rs 3,723.76 crore, against Rs 4,242.45 crore a year ago.

The bank's asset quality improved with the gross non-performing assets falling to 12.64 per cent of the gross advances by the end of September 2021, from 14.71 per cent by the end of September 2020.

In terms of value, the gross non-performing assets (NPAs) were worth Rs 80,211.73 crore, down from Rs 95,796.90 crore.

However, net NPAs increased slightly to 4.61 per cent (Rs 26,786.42 crore), from 4.13 per cent (Rs 23,894.35 crore) a year ago.

On a consolidated basis, the bank reported a net profit of Rs 1,510.68 crore in July-September 2021, a jump of 183 per cent from Rs 533.87 crore in the year-ago quarter.

Its consolidated total income rose to Rs 21,621.87 crore, from Rs 20,910.91 crore a year ago

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Union Bank of India Profit jumps 255% in Q1

 

Public sector lender Union Bank of India has reported a 255 percent year-on-year growth in Q1FY22 standalone profit, beating estimates, driven by pre-provision operating profit and other income.

The standalone profit increased to Rs 1,181 crore in the quarter ended June 2021, from Rs 332.7 crore in corresponding period last fiscal.Net interest income grew by 9.5 percent year-on-year to Rs 7,013.4 crore in Q1FY22, the bank said in its BSE filing.

Profit was estimated at Rs 701.7 crore and net interest income at Rs 5,891.3 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.Non-interest income in Q1FY22 shot up 98.4 percent to Rs 2,901 crore and pre-provision operating profit rose 31.4 percent to Rs 5,302.81 crore compared to year-ago period.

Provisions and contingencies remained at elevated levels though declined marginally, falling 0.9 percent year-on-year and 9.7 percent quarter-on-quarter to Rs 3,523.81 crore in the quarter ended June 2021.

On the asset quality front, gross non-performing assets as a percentage of gross advances fell 14 bps sequentially to 13.60 percent and net NPA as a percentage of net advances increased 7 bps QoQ to 4.69 percent during the quarter.

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Union Bank of India posts net profit in Q4, asset quality improves

 

Union Bank of India posted a standalone net profit of ₹1,329.77 crore for the quarter ended March 31, 2021. The state-run lender has reported a loss of ₹2,503.18 crore in the corresponding period of previous fiscal.

Union Bank of India clarified that the financial results for fiscal FY21 and its fourth quarter are not comparable to corresponding figures in the year-ago period as "working results for the quarter/year ended March 31, 2021, include operations of erstwhile Andhra Bank and erstwhile Corporation Bank". The central government had approved the scheme of amalgamation of the three banks on March 4, 2020, which came into effect on April 1, 2020.

"Accordingly, the difference of ₹1,309.60 crore between the net assets of amalgamating banks and the amount of shares issued to shareholders of the amalgamating banks has been recognised as Amalgamation Reserve in the opening balance sheet as on April 1, 2020. The bank has considered this amount under CET I for the purpose of calculation of CRAR," Union Bank of India said in a regulatory filing.

Total income during the quarter under review was ₹20,025.99 crore as opposed to ₹11,306.99 crore in the year-ago period. Net interest income for Q4 FY21 stood at ₹5,402.86 crore, against ₹2,878.11 crore in Q4 FY20.

Operating profit for the March quarter of FY21 was recorded at ₹5,179.87 crore, as opposed to ₹2,652.64 crore in the same period of FY20.

The bank saw its asset quality improve, with gross non-performing assets (NPAs) decline to 13.74 per cent of the gross advances as of March 31, 2021, as against 14.15 per cent by the end of corresponding period previous fiscal. Net NPAs or bad loans came down to 4.62 per cent from 5.49 per cent.

The bank said it has not classified the borrower account of Delhi Airport Metro Express (DAMEPL) as NPA in accordance to a Supreme Court order. However, following RBI directives dated June 21, 2019, the bank has not treated ₹94.9 crore as NPA against DAMEPL and made the provisions to the tune of ₹43.31 crore in accordance with the Income Recognition and Asset Classification and Provisioning (IRAC) norms, notionally treating the account as NPA.

"Further, the bank also has exposure of ₹3,269.09 crore with two borrower accounts belonging to another business group. In terms of NCLT, Kolkata bench order dated 21 October 2020, the bank has not declared these accounts as NPA and maintained status quo until further orders. As a prudence, the bank has made a provision of ₹549.45 crore pending final decision," it added.

On the impact of Covid-19 pandemic, Union Bank of India said, "Though the situation continues to remain uncertain, the bank is continuously monitoring the situation and taking all possible measures to ensure continuance of full-fledged banking operations. The management believes that there would not be any significant impact on bank's performance in future and going concern assumptions."

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Union Bank of India sees net profit jump 55%

 State owned Union Bank of India on Friday reported a 55.3 per cent jump in its net profit at Rs 517 crore in the second quarter ended September.

The bank had posted a net profit of Rs 333 crore in the same quarter a year ago.

Net interest income grew by 6.1 per cent to Rs 6,293 crore in the July-September period of 2020-21 from Rs 5,934 crore in the same period of 2019-20, it said in a release.

Gross Non-Performing Assets (NPAs) ratio improved to 14.71 per cent of the gross advances at the end of September this year from 15.75 per cent by September 2019.

Net NPAs fell to 4.13 per cent as of September from 6.40 per cent in the year-ago period.

Provision coverage ratio improved to 83.16 per cent as of September 30, 2020, compared to 74.26 per cent in the year-ago period.

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This Indian PSU banks' have exposure to Sintex Industries

Punjab National Bank (PNB) reported yet another scam on Thursday to the tune of Rs 1,203.26 crore. The public sector reported its exposure to Sintex Industries as “fraud”, its exposure to Sintex Industries.

“Pursuant to the applicable provisions of Sebi's Listing Obligations and Disclosure Requirements (LODR) and the bank's policy, "we inform reporting of borrowal fraud of Rs 1,203.26 crore in NPA account of Sintex Industries Ltd (SIL)," PNB said in a regulatory filing.

The fraud reporting pertains to the large corporate branch at Ahmedabad zonal office, it added.

"The fraud of Rs 1,203.26 crore is being reported by bank to RBI in the accounts of the Company (SIL). Bank has already made provisions amounting to Rs 215.21 crore, as per prescribed prudential norms," the PSU bank said in a BSE filing.

This after the stressed textile company said it defaulted on its debt repayment of Rs 49.54 crore to a total of 10 investors. Of this amount, Rs 45.84 crore is the principal amount while the remaining Rs 3.70 crore was the due interest.

Sintex Industries’ total debt stands at Rs 7,358.88 crore. According to a TOI report, the total exposure of public sector banks to Sintex could be as much as Rs 6,000 crore. The banks have already classified the Sintex account as a non-performing asset (NPA) but will now will have to make full provision for the loan within four quarters – which is a requirement account classified as fraud.

According to Brickwork Ratings, at Rs 1,203.26 crore, PNB has the highest exposure to Sintex followed by Bank of Baroda (BoB) at Rs 649 crore, it rises to Rs 949 crore if the exposure of Dena Bank and Vijaya Bank, which merged with BoB, is taken into account. Another PSU bank Union Bank of India has an exposure of Rs 621 crore, including the erstwhile Andhra Bank which was merged into Union Bank followed by Canara Bank (erstwhile Syndicate Bank) at Rs 472 crore, Exim Bank at Rs 416 crore, Punjab & Sindh Bank Rs 333 crore, Andhra Bank Rs 250 crore.

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Union bank of India Q1 result : profit down 13%

In its Q1 results after the amalgamation of Andhra Bank and Corporation Bank with it, Union Bank of India (UBI) reported a standalone net profit of ₹333 crore in the quarter ended June 30, 2020.

The public sector bank had reported a net profit of ₹381 crore in the year-ago period.

The bank, in its analyst presentation, said Andhra Bank and Corporation Bank amalgamated into it with effect from April 1. Accordingly, financials as on June 2019 and March 2020 are for the amalgamated entity, it added.

Rajkiran Rai G, MD and CEO, said there has been a substantial improvement in net interest income (NII).

NII (difference between interest earned and interest expended) was up 17 per cent at ₹6,403 crore (₹5,468 crore in the year-ago period).

Other income (comprising core non-interest income, treasury income and recovery in written-off accounts), however, was down 23 per cent at ₹1,462 crore (₹1,897 crore).

Operating profit nudged up 3 per cent at ₹4,034 crore (₹3,918 crore).

Slippages were lower at ₹1,750 crore (₹4,303 crore in the preceding quarter).

Reduction in non-performing assets (NPAs) was sharply down at ₹1,753 crore (₹7,542 crore: preceding quarter) as the pandemic threw recovery operations out of gear.

Rai said 28 per cent of the bank’s term loans by value are under Covid-19 related moratorium as of June-end 2020.

The bank’s board has given approval for one-time restructuring of personal and MSME loans, and instructions will soon be given to the branches on the standard operating procedure to be followed, he added.

The Union Bank chief underscored that the amalgamation will result in cost savings of ₹3,600 crore over three years.

Rai said UBI will disinvest its 30 per cent stake in IndiaFirst Life Insurance Company by December 2020. This sale is expected to fetch about ₹900 crore to ₹1,000 crore.

Originally, erstwhile Andhra Bank was owning 30 per cent stake in IndiaFirst Life. UBI currently has 25.10 per cent stake in Star Union Dai-Ichi Life Insurance Company.

Rai said UBI has board approval for raising ₹10,300 crore, comprising ₹6,800 crore equity and the balance in the form of additional tier-I capital.

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Union Bank of India Q4 net loss narrows

State-owned Union Bank of India on Tuesday reported narrowing of its standalone net loss to Rs 2,503.18 crore in the fourth quarter ended March 2020.

The bank had posted a net loss of Rs 3,369.23 crore during the same quarter of the previous financial year. Sequentially, there was a net profit of Rs 574.58 crore in the third quarter of 2019-20.

Standalone income during the March 2020 quarter rose to Rs 11,306.99 crore from Rs 9,621.01 crore a year ago, the bank said in a regulatory filing.

Its provisioning for bad loans and contingencies in April-March 2020 fell to Rs 3,501.69 crore, compared with Rs 5,766.15 crore in the year-ago period.

For the full financial year 2019-20, Union Bank posted a standalone net loss of Rs 2,897.78 crore, down as compared with a loss of Rs 2,947.45 crore a year ago.

Income during the year, however, rose to Rs 42,491.91 crore from Rs 38,540.61 crore in the previous financial year.

On the asset front, the bank witnessed improvement with the gross non-performing assets (NPAs) coming down to 14.15 per cent of the gross advances as on March 31, 2020, from 14.98 per cent by the end of March 2019.

In absolute value, gross NPAs or bad loans stood at Rs 49,085.30 crore by the end of 2019-20, against Rs 48,729.15 crore a year ago.

Net NPAs fell to 5.49 per cent (Rs 17,303.14 crore) from 6.85 per cent (Rs 20,332.42 crore).

The amalgamation of Andhra Bank and Corporation Bank with Union Bank of lndia was effective April 1, 2020.

"Accordingly, the bank, as a prudential measure, has made harmonisation provisioning in its books of accounts for the position as on March 31, 2020, with regard to impact of divergence in asset classification across Union Bank of India, Andhra Bank and Corporation Bank as per extant norms," it said.

The lender added that it has made an additional harmonisation provision for the quarter and year ended March 31, 2020, amounting to Rs 2,509.98 crore and the same is disclosed as exceptional items in the financial results.

With the amalgamation of Andhra Bank and Corporation Bank, Union Bank has become the fifth-largest public sector bank in the country and has an enhanced business mix having a total business of Rs 15 lakh crore and 120 million customer base.

Its gross advances stood at around Rs 6.50 lakh crore as on March 31, 2020.

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