Union Bank Q3 profit soars 38% to Rs 302 cr; shares up 6%

State-controlled lender Union Bank of India surprised the street by reporting net profit growth of 37.7 percent year-on-year to Rs 302.4 crore in the third quarter of financial year 2012-13, led by lower non-performing assets.

Net interest income rose 2.6 percent to Rs 1,891.4 crore from Rs 1,843.6 crore during the same period. Gross non performing asset (NPA) improved by 30 basis points quarter-on-quarter to 3.36 percent and net NPA fall by 36 basis points QoQ to 1.7 percent in the October-December quarter. However, provisions against bad loans increased quite sharply to Rs 857.3 crore in the third quarter as against Rs 487 crore in second quarter of FY13. Capital adequacy ratio stood at 10.78 percent as against 11.39 percent QoQ. The board of directors of the state-owned lender approved raising equity capital up to Rs 1,000 crore on preferential/QIP/rights basis towards capital infusion in addition to Rs 1,500 crore approved in board meeting held on December 27, 2012. At 12:31 hours IST, shares shot up 6 percent to Rs 255.40 amid large volumes on Bombay Stock Exchange. Trading volumes went up nearly 200 percent to 6,85,762 equity shares as against five-day average of 2,39,816 shares. Also Read
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