Union Bank of India shares tumble after Q1 profit fall

Shares in Union Bank of India fell as much as 7.3 per cent on Monday in their biggest single-day fall in nearly seven months, after the state-run lender reported its first-quarter profit plunged 68 per cent on higher bad loans.

Union Bank said on Saturday that net profit fell to 1.67 billion rupees for the three months to June 30, from 5.19 billion rupees a year earlier.

Gross bad loans as a percentage of total loans rose to 10.16 per cent as of end-June from 8.7 per cent at end-March, and compared with 5.53 per cent as of June 2015. 

Union Bank shares were trading at 128.80 rupees, down 6.9 per cent, as of 0408 GMT, as against a 0.2 per cent gain in the broader NSE Nifty.