Union Bank of India registered a robust growth for Q3FY2017-18 with Total Business crossing Rs 7.00 lakh crores. While Global Business grew by 8.6% to Rs 712993 crore by December 31, 2017 (against Rs 656819 crore in December 31, 2016,) CASA deposits grew by 4.6% to Rs 135537 crore from Rs 129588 crore last year with total 37 lakh CASA accounts opened during the current financial year of which 35 lakhs were Savings Bank accounts.

Net Loss for the quarter stood at Rs 1250 crore and included investment depreciation of Rs 700 crore and Rs 991 crore of additional provision for 18 accounts referred to National Company Law tribunal (NCLT).

The nine months (2017-18) financial performance witnessed Global NIM at 2.13%, as against 2.19% for previous year, while domestic NIM was 2.23% in this period against 2.27% last year. Net Interest Income for this period grew by 9.1% y-o-y to Rs 7112 crore from Rs 6516 crore last year. Net Loss for 9months/2017-18 was Rs 2664 crore and included Investment Depreciation and Rs 2557 crore additional provision for 29 accounts referred to NCLT.

Asset Slippages for the quarter were Rs 4187 crore with Gross NPAs at 13.03% (against 12.35% on September30 2017, and 11.70% on December 2016). Net NPA ratio was 6.96% during Q3 (against 6.70% on September 30 2017 and 6.95% on December 2016). Provision Coverage was 57.12% (against 50.62% on December 31,2016.)

Rajkiran Rai G, Managing Director & CEO,Union Bank Of India, told media here today that NPAs increased during the Q3/2017-18 due to Slippages in various accounts including telecom companies in SDR. “We took a full hit during Q3/2017-18 including 55% on NCLT cases (in which we took 4 to 5 cases to NCLT on our own and we led in one such case). We looked at the Rs 4,187 crore slippages as coming from the substandard category and around 75% of the slippages were from the Stressed Book.”

The bank’s Asset Quality Sectoral Slippage book for Q3 2017-18 included: Retail loans (114 crores), Agriculture (Rs 247 crores), Micro&Small (MSME) at Rs 373 crores, Medium and Large (Rs 3453 crores).

However, Recovery was expected from substantial accounts on Q4/2017-18 with Rs 8,000 crore expected from sale of NPAs, he said, adding that Rs 700 crore Recovery came in this third quarter and Rs 1,000 crore Recovery was expected in Q4/2017-18. “We had invested in some non-core companies for which we are looking for buyers, while we raised Rs 82 crores in sale of some non-core companies.,” he said.

Rai said the outlook for Q4/2017-18 expected 8% to 10% growth in Advances and 7% to 8% increase in Deposits, besides nationalizing the bank’s non-viable branches. “We are viewing Bond Markets and development steps are welcome, though we need to see who the investors are. Retail investors are welcome,” he added.