Union Bank of India first-quarter profit dives, bad loans rise

New Delhi:  State-run Union Bank of India reported nearly 30 percent fall in first-quarter net profit as provisions for bad loans remained high.

Net profit fell to 1.17 billion rupees ($18.27 million), for the three months ended June 30, from 1.66 billion rupees a year ago, the Mumbai-based bank said on Thursday.

Analysts on an average had expected the bank to report a net profit of 1.95 billion rupees, according to Thomson Reuters data.

As of end-June, gross bad loans as a percentage of total loans rose to 12.63 percent from 11.17 percent at the end of March, and 10.16 percent at end-June 2016.