The Union Bank of India has declared a Net Profit of Rs 422 crore for nine months ending December 31, 2018, besides Cash Recovery and Upgradation at 178.8% (YoY), and Provision Coverage Ratio at 58.84%. Domestic Business grew by 4.6% to Rs 702957 crore by December 31, 2018 against Rs 672091 crore in the same period last year.
Net Profit for October-December 2018 improved to Rs 153 crore, compared to Net Loss of Rs 1250 crore in that period during 2017. Net Profit for 9 months/2018-19 improved to Rs 422 crore from Net Loss of Rs 2664 crore for 9months (2017-18).
Cash Recovery & Upgradation during the nine months of 2018-19 increased by 178.8% to Rs 5035 crores, as against Rs 1806 crore during nine months of 2017-18. Gross NPAs were reduced at 15.66% on December 31,2018, as against 15.74% on September 30, 2018, while Net NPA ratio came down to 8.27% in December 31, 2018 against 8.42% on September 30, 2018 and Provision Coverage Ration improved to 58.84% on December 31, 2018 against 57.12% on December 31, 2017.
Replying to questions, Rajkiran Rai, MD/CEO, said that while the Bank’s cash recovery efforts have improved, Rs 1,000 crores of Slippages had occurred of which major exposure was on the acount of the Thermal Power sector. Ageing Provisions and Slippages were adding to Provisions’ requirements, besides lots of unexpected legal issues cropping up that would hopefully be solved, he said.
Regarding the State Bank of India putting up Essar Steel for sale, he said Union Bank had kept its options open — where its weak assets were concerned — and would take a call on this anytime. “The present nine-month period has witnessed our recovery and upgradation efforts literally doubling as separate verticals were set up over the past one year with Rs 2000 crores recovery done from various accounts — including three big accounts — in the quarter ended December 31, 2018 itself,” he said, adding that on the settlements side, the Bank expects several accounts of Rs 1,000 crores to be settled.
Pointing out that the Bank had 15 NCLT cases pending, he said the Bank had recovered Rs 1,300 crores from five accounts via settlement in three cases through the NCLT. “We had set up Restructuring Committees at all levels three months ago and a study is going on. We did 3,000 portfolio buyouts so far, but are looking for suitable portfolios that suit us,” he added.
