Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Union Bank Net Loss Widens to Rs 3,370 Crore in Q4 on Higher Provisioning

Union Bank of India reported a net loss of Rs 2,583 crore for the same quarter previous fiscal.

PTI

Updated:May 14, 2019, 9:23 PM IST
facebookTwitterskypewhatsapp
Union Bank Net Loss Widens to Rs 3,370 Crore in Q4 on Higher Provisioning
File photo of Union Bank of India. (Image: Reuters)

Mumbai: State-owned Union Bank of India on Tuesday said its net loss widened to Rs 3,370 crore in the fourth quarter of 2018-19, mainly on account of higher provisioning.

The bank had reported a net loss of Rs 2,583 crore for the same quarter previous fiscal.

The lender said the RBI had pointed out divergence in respect of its provision for NPAs at Rs 27,324 crore for the FY2018 as against Rs 25,044 crore provision reported by the bank.

"Due to divergence found by RBI for FY18, the provisions for NPAs increased by Rs 2,280 crore in this quarter. Also, there were provision on account of ageing of NPAs," the bank's Managing Director and CEO Rajkiran Rai G told reporters here.

The worst for the bank is over and expects healthy growth in the coming quarters, he added.

For the full fiscal, the bank reported a net loss at Rs 2,948 crore as against Rs 5,247 crore in FY2018.

Domestic net interest margin (NIM) stood at 2.38 per cent for the quarter as against 2.23 per cent, while global NIM was 2.27 per cent.

Gross NPA of the bank improved to 14.98 per cent from 15.73 per cent, while net NPAs stood at 6.85 per cent compared to 8.42 per cent.

Rai expects gross NPAs to be below 12 per cent and net NPA in the range of 5-6 per cent by FY2020.

Fresh slippages in the quarter declined to Rs 3,275 crore from Rs 10,043 crore in the same period previous fiscal.

The lender has an exposure of Rs 1,100 crore to Infrastructure Leasing and Financial Services (IL&FS), of which Rs 1,000 crore has turned NPA.

Rai expects to recover Rs 3,000-3,500 crore from three accounts of RBI's NCLT list one- Bhushan Power and Steel, Essar Steel and Alok Industries.

The lender sold Rs 38 crore of bad loans to asset reconstruction companies in the quarter and Rs 700 crore of NPAs during the full year.

The bank is looking to raise Rs 300 crore in FY2020 by selling its stake in NSE, NPCI NSDL and CCIL, Rai said.

Its total deposit grew 1.8 per cent to Rs 4,15,915 crore as on March 31, 2019 and advances increased by 7.8 per cent to Rs 3,10,932 crore.

Rai expects loan growth of 9.11 per cent and deposits at 8 per cent in the current fiscal.

The bank's scrip ended up 4.21 per cent at Rs 79.25 apiece on the BSE Tuesday.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 47.40 15.47
Indiabulls Hsg 197.95 14.39
Reliance 1,396.50 1.76
SBI 265.45 3.67
Zee Entertain 264.45 1.85
Company Price Change %Gain
Yes Bank 47.40 15.19
Indiabulls Hsg 197.15 14.03
RBL Bank 289.85 12.32
Tata Motors 138.15 9.82
HUL 2,107.80 1.74
Top Gainers
Company Price Change %Gain
Yes Bank 47.40 15.47
Tata Motors 139.50 10.85
Eicher Motors 20,491.85 6.61
IndusInd Bank 1,340.10 5.15
SBI 265.45 3.67
Company Price Change %Gain
Yes Bank 47.40 15.19
Tata Motors 138.15 9.82
IndusInd Bank 1,339.80 5.13
SBI 265.45 3.73
Bajaj Auto 3,110.30 2.96
Top Losers
Company Price Change %Gain
Vedanta 148.30 -1.07
Grasim 724.55 -0.86
TCS 2,030.95 -0.75
HCL Tech 1,093.05 -0.71
UltraTechCement 4,260.45 -0.58
Company Price Change %Gain
HCL Tech 1,089.45 -1.04
Vedanta 148.15 -1.04
Power Grid Corp 197.70 -0.50
Kotak Mahindra 1,601.00 -0.31
Infosys 769.10 -0.30

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results