Union Bank net profit down 68% in Q1

Mumbai: State-run lender Union Bank on Saturday reported a 68 percent decrease in its net profit to Rs 166.32 crore in the quarter ended June 30, as compared to Rs 518.78 crore in the corresponding period last year.

The net profit in the quarter, however, was 72.2 per cent higher over the January-March period. Global business in the quarter grew by 4.2 per cent from Rs 5,82,817 crore as on June 30, 2015 to Rs 6,07,280 crore as on June 30, 2016.

Net NPA ratio was at 6.16 per cent as on June 30, 2016 as against 3.08 per cent as on June 30 last year. Capital adequacy ratio of the bank under Basel III stood at 10.75 per cent in the quarter ended June 30, increase over 10.14 per cent in June 2015.

The bank said its domestic net interest margin (NIM) stood at 2.36 per cent for April-June 2016 as compared to 2.46 per cent in the year-ago period. Net interest income for April-June period was at Rs 2,103 crore as against Rs 2,130 crore in the same period last year.

Under the Pradhan Manrti Jan Dhan Yojana (PMJDY), the bank has opened more than 58 lakh accounts having balance of Rs 892 crore upto June 30, 2016. The centre has announced capital infusion of Rs 721 crore during the current fiscal.