Union Bank Q2 profit seen up 45%, NII may remain subdued

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Public sector lender Union Bank of India's profit growth in July-September quarter is expected to be strong but net interest income and loan growth may remain subdued. It will announce earnings on November 6.

Profit may surge 44.8 percent to Rs 537 crore and net interest income is likely to increase 3.4 percent to Rs 2,155 crore compared to corresponding quarter of last fiscal.

PSU banks so far have been reporting better gross non-performing assets (NPA) during the quarter and Union Bank is expected to be better placed, say analysts. Hence, asset quality will be closely watched for the quarter.

Gross NPA in Q1FY16 increased 57 basis points sequentially to 5.53 percent with stressed loans at 8.8 percent of total advances.

Slippages will also be closely monitored as run rate of slippages had been improved in previous three quarters.