Published: Fri, August 11, 2017
Culture | By Julio Duncan

Bank of India posts net of Rs 88 crore

Bank of India posts net of Rs 88 crore

Public sector lender Union Bank of India's first quarter profit is seen falling 25.3 percent year-on-year to Rs 124.3 crore due to higher provisions.

Despite a downsizing of the NPA provisions, the bank witnessed a year-on-year spike in its bad assets proportion during the first quarter of current fiscal 2017-18. Gross non-performing assets (NPAs) ratio declined sequentially, and was 13.05% as on June 30, 2017, against 13.22% as on March 31, 2017.

Its total expenses were at Rs 715.78 crore as compared to Rs 599.28 crore in June quarter last fiscal.

The bank had posted a loss of Rs 1,045.52 crore in the sequential quarter (Q4FY17). Return on assets - a key indicator of how profitable a company is relative to its total assets - fell to 0.74% from 2%.

For the quarter ended June 30, net profit stood at Rs 116.5 crore, the bank said on Thursday.

Year-over-year, the only improvements the bank has made has been in terms of its shoring up its solvency margins and reducing costs Capital adequacy ratio (%) at the bank in line with Basel III regulations improved to 10.64% from 9.47%.

SBI shares were trading down 4.6 per cent or Rs 13.65 at Rs 282.90 on the BSE at about 1.30 pm.

Consolidated net profit jumped to Rs 3,105.35 crore in Q1FY18 against Rs 867.32 crore a year ago.

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