Public sector lender Union Bank of India will announce its fourth quarter earnings on Tuesday. Profit is expected to fall 27.6 percent year-on-year to Rs 419 crore while net interest income may increase 11.3 percent to Rs 2,285 crore for the quarter ended March 2015, according to a CNBC-TV18 poll.
Net interest income is the difference between interest earned and interest expended.
Asset quality is the key to watch out for as analysts expect stress to continue in March quarter. Stressed asset formation in Q3 spiked to around Rs 2,800 crore (5 percent of loan) against Rs 2,100 crore (3.9 percent of loan) in Q2.
Hence, the bank remained cautious and guided restructuring of Rs 1,500 crore post Q3 earnings against Rs 1,200 crore in Q3.
Net interest margin is expected to sustain around at around 2.5 percent.
Meanwhile, Union Bank deferred its Rs 1,386 crore QIP plan to next fiscal (FY16).
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