Union Bank of India (UBI) reported a standalone net profit of ₹517 crore in the second quarter ended September 30, 2020, against a net loss of ₹994 crore in the year-ago period.

The public sector bank’s net profit in the reporting quarter was up 55 per cent quarter-on-quarter (q-o-q) vis-a-vis preceding quarter’s ₹333 crore.

The bottomline in the reporting quarter was supported by 26 per cent year-on-year (y-o-y) decline in loan-loss provisions and 6 per cent growth in net interest income..

Loan-loss provisions were lower at ₹3,721 crore in the reporting quarter against ₹5,055 crore in the year-ago quarter.

Net interest income (difference between interest earned and interest expended) increased to ₹6,293 crore (₹5,934 crore in the year-ago period).

Non-interest income, comprising core non-interest income; treasury income; and recovery in written off accounts, among others, declined about 7 per cent to ₹2,308 crore (₹2,492 crore).

The Mumbai-headquartered public sector bank’s operating profit edged up 2 per cent y-o-y to ₹4,735 crore (₹4,643 crore).

Gross non-performing assets (NPAs) declined by ₹1,393 crore during the reporting quarter to ₹95,797 crore as of September-end 2020.

GNPAs slightly improved to 14.71 per cent of gross advances against 14.95 per cent in the preceding quarter.

Net NPAs declined to 4.13 per cent of net advances against 4.97 per cent in the preceding quarter.

As of September-end 2020, total deposits were up 4 per cent y-o-y to ₹8,86,098 crore. Within this, current account, savings account (CASA) deposits were at 34.6 per cent of total deposits against 32 per cent.

Gross advances inched up 2 per cent y-o-y to ₹6,51,062 crore, mainly on the back of growth in retail advances (8 per cent y-o-y growth), agriculture (4 per cent) and MSME advances (3 per cent).

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