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Union Bank Q1 net profit plunges 13% to Rs 333 crore

Bank’s net interest income rose by 17.1 per cent to Rs 6,403 crore as against Rs 5,468 crore in the same period last year.

SNS | New Delhi |

Union Bank on India’s net profit dropped by 13 per cent to Rs 333 crore in the April-June quarter of the current fiscal year. The state-run lender had reported a net loss of Rs 7,157 crore during the corresponding period of the previous fiscal.

While the numbers of the first quarter plunged drastically, the lender said that the year on year data was not strictly comparable as it merged Andhra and Corporation Bank with itself effective from April 1 2020.

“Amalgamation of the Andhra Bank and the Corporation Bank came into effect on April 1, 2020; accordingly the combined financials as on March 31, 2020 and June 30, 2019 has been arrived at by aggregating audited or reviewed numbers of three banks,” the lender said in a statement issued on Friday.

Bank’s net interest income rose by 17.1 per cent to Rs 6,403 crore as against Rs 5,468 crore in the same period last year.

On the assets front, the lender’s gross non-performing assets (NPAs) improved to 14.95 per cent as on June 30, 2020 compared to 15.59 per cent as on June 30, 2019.

“Net NPA ratio improved to 4.97 per cent as on June 30, 2020 compared to 6.47 per cent as on June 30, 2019,” the statement said.

“Provision Coverage Ratio (PCR) improved to 79.87 per cent as on June 30, 2020 compared to 73.38 per cent as on June 30, 2019,” it added.