As shown in the cases of SBI, PNB, Union Bank, BoB, Bank of Maharashtra and IDBI Bank, most of the time, there is no or negligible recovery for the amounts written off
The lender's one-year MCLR has been revised to 7.20 percent from 7.25 percent, it said in a statement.
One relief for Union Bank will be the exit route for moratorium loans given by the RBI in the form of a corporate loan restructuring scheme. The shock will be less.
The PSU lender on August 21 reported a profit of Rs 332.74 crore for the quarter-ended June
Net interest income during the quarter increased 154.2 percent YoY to Rs 6,403.2 crore
One-year MCLR now stands at 7.25 percent, down from 7.40 percent, the bank said in a regulatory filing.
The revised one-year MCLR stands at 7.40 percent against 7.60 percent earlier, the bank said in a release.
Emkay Global Financial is bearish on Union Bank of India has recommended sell rating on the stock with a target price of Rs 26 in its research report dated June 24, 2020.
The stock price was the top BSE midcap loser and was trading at at Rs 34.15, down Rs 1.80, or 5.01 percent.
For the full financial year 2019-20, Union Bank posted a standalone net loss of Rs 2,897.78 crore, down as compared with a loss of Rs 2,947.45 crore a year ago.
The recent cuts in MCLR by banks have come after the Reserve Bank of India (RBI) slashed repo rate by 40 basis points to 4 percent on May 22.
This is the eleventh consecutive rate cut announced by the bank since July 2019, a release said.
Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman have praised bankers for imparting their duty in these challenging times.
The new rate will be applicable for all floating-rate personal or retail loans (such as housing and automobiles) and floating-rate loans to micro, small and medium enterprises
Finance Minister Nirmala Sitharaman on March 12 held meetings with chief executives of these banks, including Andhra Bank, Corporation Bank and Union Bank of India.
This is the ninth consecutive rate cut announced by the Mumbai-based bank since July 2019.
Recoveries and upgradations rose to Rs 2,837 crore in the third quarter, as compared to Rs 1,303 crore in the previous quarter and Rs 1,797 crore in the same period last year.
UBI said this is the seventh consecutive rate cut announced by the lender since July 2019.
All these NPAs will be sold through e-auctions during January.
The report noted that 70 fraudulent withdrawals were carried out from the accounts of the bank's customers.
One-year MCLR now stands at 8.20 per cent, down from 8.25 per cent, the public sector bank said.