 "State-owned Union Bank of India fourth quarter profit at Rs 1,330 crore")
State-owned Union Bank of India on Monday reported a standalone net profit of Rs 1,329.77 crore for March quarter 2020-21.
It incurred a net loss of Rs 2,503.18 crore in the year-ago quarter.
Union Bank said the results of the quarter and year ended March 31, 2021 include operations of the erstwhile Andhra Bank and Corporation Bank, and hence are not comparable with the corresponding periods of previous year.
These two banks were amalgamated into Union Bank of India with effect from April 1, 2020.
Total income during March quarter 2020-21 was at Rs 20,025.99 crore. In the year-ago period it was Rs 11,306.99 crore.
For the full year 2020-21, there was a net profit of Rs 2,905.97 crore on a standalone basis. In 2019-20, the bank reported a net loss of Rs 2,897.78 crore, as an unamalgamated entity.
Also Read
Total income during the year was recorded at Rs 80,104.19 crore as against Rs 42,491.91 crore in 2019-20.
In terms of asset quality, there was an improvement as the gross non-performing assets fell to 13.74 per cent of the gross advances as of March 2021 as against 14.15 per cent by the end of same month last year.
Net NPAs or bad loans came down to 4.62 per cent from 5.49 per cent.
The lender said it has not classified the account of borrower -- Delhi Airport Metro Express Pvt Ltd (DAMEPL)-- as a non-performing asset (NPA).
As per RBI directive of June 2019, it has not treated Rs 94.9 crore as NPA against DAMEPL and has made the provision of Rs 43.31 crore as provisions, which is as per the requirement of the norm.
"Further, the bank also has exposure of Rs 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 Rs 549.45 crore pending final decision," it added.
Union Bank of India stock closed 0.42 per cent up at Rs 35.60 on BSE.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)