Gross NPAs rise to Rs 3,524 crore, or 2.79 per cent of gross advances.
Owing to higher provisioning towards non-performing assets (NPAs), state-run Union Bank of India reported 40 per cent decline in net profit to Rs 304 crore for the quarter ended September. It stood at Rs 505 crore in the year-ago period.
Provisioning towards NPAs increased from Rs 102 crore to Rs 629 crore. During the quarter, the bank saw fresh slippages to the tune of Rs 1,134 crore, of which Rs 417 crore was for the agricultural debt waiver and debt relief scheme of 2008.
A large engineering, procurement and construction firm also contributed more than Rs 200 crore of slippage. The bank expects provisioning at elevated levels going ahead but hopes the pace of slippages will slow down. It also expects substantial recovery and upgradation in recovery of NPAs which is expected to boost profitability and margins in 2011-12.
Gross NPAs increased to Rs 3,524 crore, or 2.79 per cent of the gross advances, as against Rs 1,918 crore or 1.93 per cent in the year-ago period.
Chairman M V Nair said the bank will aim to bring down the gross NPAs below 2.3 per cent by the end of the current financial year.
While the net interest income registered healthy growth of 73 per cent to Rs 1,537 crore, trading income fell to Rs 131 crore due to hardening of bond yields, as against Rs 192 crore in the year-ago period.
The net interest margin stood at 3.35 per cent, including a one-time extraordinary income of Rs 62 crore, without which it would have been 3.21 per cent. In the year-ago period, it stood at 2.42 per cent.
Karur Vysya net up 13%
Private sector lender, Karur Vysya Bank on Wednesday reported a net profit of Rs 102.60 crore for the quarter ended September. It had a net profit of Rs 90.90 crore during the year-ago period, an increase of 12.87 per cent. Total income grew 22.03 per cent to Rs 596.51 crore, as against Rs 488.82 crore in the year-ago period.
IFCI profit up 6.20%
The Industrial Finance Corporation of India (IFCI) has reported a small growth in its net profit at Rs 202.30 crore for the quarter ended September, as against Rs 190.48 crore in the year-ago period.
The Delhi-based company’s income from operations rose to Rs 613.67 crore in reporting quarter from Rs 411.06 crore in the previous quarter.
Its interest expenses shot up to Rs 347.96 crore from Rs 219.64 crore an year ago. At Rs 74.10, the company’s stock closed 1.37 per cent higher on the Bombay Stock Exchange.
