Union Bank of India Q2 Results: Profit drops on lower other income, asset quality better

State-run Union Bank of India Ltd. reported results for the September quarter on Thursday, October 30. The stock is witnessing volatile moves in its price action post the results announcement.

Union Bank's Net Interest Income, or core income fell by 2.6% on a year-on-year basis to ₹8,812 crore, which although, is higher than the CNBC-TV18 poll expectation of ₹8,744 crore.

Net profit declined by 10% from last year to ₹4,249 crore. A CNBC-TV18 poll had projected a greater fall in profitability for the lender to ₹3,528 crore.

Union Bank's asset quality improved on a sequential basis. Gross NPA at the end of the September quarter stood at 3.29% from 3.52% in June, while Net NPA improved to 0.55% from 0.62% in June.

In absolute terms, Union Bank's Gross NPA stood at ₹32,085 crore from ₹34,311 crore in June, while Net NPA improved to ₹5,209 crore from ₹5,873 crore in the previous quarter.

Provisions for the quarter reserved for Non-Performing Assets (NPAs) nearly halved to ₹526 crore from ₹1,152 crore.

Shares of Union Bank of India are currently fluctuating between gains and losses, currently trading little changed at ₹146.38. The stock is up 6% in the last one month and has extended its year-to-date advance to 20%.