Union Bank beats estimates, profit rises to ₹5,017 crore

80% decline in provisions boosts numbers

- KSHIPRA PETKAR

UNION BANK OF India on Wednesday reported a 9% rise in its net profit to 5,017 crore for the December quarter.

According to Bloomberg estimates, the lender was expected to report a net profit of ₹3,872 crore. The rise in the bottom line was due to a sharp fall in provisions and an improvement in the asset quality.

Provisions and contingencies, excluding tax provisions, fell nearly 80% on year to ₹322 crore and tax expenses rose to ₹1,603 crore, taking the total provisions to ₹1,825 crore during the reporting quarter. Credit cost moderated to 0.09% from 0.22% a quarter ago. The provision coverage ratio stood at 95.13%.