Union Bank of India Q4 Results: Stock drops 7% after decline in core income, provisions rise

Shares of state-run Union bank of India fell as much as 7% after the lender reported a drop in its core income for the March quarter on Thursday, April 23.

Net Interest Income (NII) or core income for the quarter declined by 1.1% from the same quarter last year to ₹9,406 crore from ₹9,514 crore.

Net profit for the period increased by 6.6% year-on-year to ₹5,316 crore from ₹4,985 crore last year.

Asset quality though improved for the PSU Bank on a sequential basis. Gross NPA improved to 2.82% from 3.06% in December, while Net NPAs were steady at 0.48% from 0.51% in December.

Provisions for the quarter have seen a substantial increase, rising to ₹1,055 crore, which is a 3x jump from the ₹322 crore provision figure during the December period.

Details on slippages and other aspects are still awaited.

Union Bank of India had earlier disclosed its business metrics in an update earlier this month.

Global advances for the quarter increased by nearly 10% from last year to ₹10.78 lakh crore, while global deposits were up 2.7% to ₹13.06 lakh crore.

Shares of Union Bank of India are now trading 6% lower after the results announcement at ₹182.38. The stock had recently made a 52-week high of ₹205.49. Shares have risen 11% in the last one month.

This is breaking news and will be updated with more details.