Union Bank Q4 Loss Narrows To ₹2,503 Crore
Money & Banking
Union Bank of India (UBI) reported a net loss ₹2,503 crore in the fourth quarter ended March 31, 2020.
The bank’s financial results come in the backdrop of the amalgamation of Andhra Bank (AB) and Corporation Bank (CB) with UBI, which was effective April 1, 2020.
The public sector bank had reported a net loss of ₹3,370 crore in the year ago period.
UBI reported an operating profit of ₹2,653 crore in the reporting quarter. Its operating profit in the year ago period was ₹1,730 crore.
Net interest income was at ₹2,878 crore (₹ 2,602 crore in the year ago quarter). Non-interest income was at ₹2,018 crore (₹1,272 crore).
In the reporting quarter, UBI made non-performing asset (NPA) provisions of ₹5,485 crore (₹ 5,783 crore).
The Bank said it has made an additional harmonization provision for the reporting quarter amounting to ₹2,510 crore.
As per the notes to accounts: “There may be an impact on revenue of the bank during lst and 2nd quarter of the FY 2020-21 due to slowdown of economic activity.
“With the measures being taken by the Centre and State Governments, normalcy is expected to be restored by 3rd and 4th quarter of the current financial year.”
Nevertheless, the management believes that no adjustments are required in the financial results as the bank is adequately capitalized and has sufficient liquidity to take care of its present and future operations and there would not be any significant impact on bank's performance in future and going concern assumptions, it added.
As at March-end 2020, gross NPAs were at 14.15 per cent of gross advances as against 14.98 per cent as at March-end 2019. Net NPAs were at 5.49 per cent of net advances as against 6.85 per cent.
Published on
June 23, 2020
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Union Bank of India (UBI) reported a net loss ₹2,503 crore in the fourth quarter ended March 31, 2020.
The bank’s financial results come in the backdrop of the amalgamation of Andhra Bank (AB) and Corporation Bank (CB) with UBI, which was effective April 1, 2020.
The public sector bank had reported a net loss of ₹3,370 crore in the year ago period.
UBI reported an operating profit of ₹2,653 crore in the reporting quarter. Its operating profit in the year ago period was ₹1,730 crore.
Net interest income was at ₹2,878 crore (₹ 2,602 crore in the year ago quarter). Non-interest income was at ₹2,018 crore (₹1,272 crore).
In the reporting quarter, UBI made non-performing asset (NPA) provisions of ₹5,485 crore (₹ 5,783 crore).
The Bank said it has made an additional harmonization provision for the reporting quarter amounting to ₹2,510 crore.
As per the notes to accounts: “There may be an impact on revenue of the bank during lst and 2nd quarter of the FY 2020-21 due to slowdown of economic activity.
“With the measures being taken by the Centre and State Governments, normalcy is expected to be restored by 3rd and 4th quarter of the current financial year.”
Nevertheless, the management believes that no adjustments are required in the financial results as the bank is adequately capitalized and has sufficient liquidity to take care of its present and future operations and there would not be any significant impact on bank's performance in future and going concern assumptions, it added.
As at March-end 2020, gross NPAs were at 14.15 per cent of gross advances as against 14.98 per cent as at March-end 2019. Net NPAs were at 5.49 per cent of net advances as against 6.85 per cent.
Published on
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.
In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.
Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..
A little help from you can make a huge difference to the cause of quality journalism!
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