Union Bank of India (UBI) reported a net loss ₹2,503 crore in the fourth quarter ended March 31, 2020.

The bank’s financial results come in the backdrop of the amalgamation of Andhra Bank (AB) and Corporation Bank (CB) with UBI, which was effective April 1, 2020.

The public sector bank had reported a net loss of ₹3,370 crore in the year ago period.

UBI reported an operating profit of ₹2,653 crore in the reporting quarter. Its operating profit in the year ago period was ₹1,730 crore.

Net interest income was at ₹2,878 crore (₹ 2,602 crore in the year ago quarter). Non-interest income was at ₹2,018 crore (₹1,272 crore).

In the reporting quarter, UBI made non-performing asset (NPA) provisions of ₹5,485 crore (₹ 5,783 crore).

The Bank said it has made an additional harmonization provision for the reporting quarter amounting to ₹2,510 crore.

As per the notes to accounts: “There may be an impact on revenue of the bank during lst and 2nd quarter of the FY 2020-21 due to slowdown of economic activity.

“With the measures being taken by the Centre and State Governments, normalcy is expected to be restored by 3rd and 4th quarter of the current financial year.”

Nevertheless, the management believes that no adjustments are required in the financial results as the bank is adequately capitalized and has sufficient liquidity to take care of its present and future operations and there would not be any significant impact on bank's performance in future and going concern assumptions, it added.

As at March-end 2020, gross NPAs were at 14.15 per cent of gross advances as against 14.98 per cent as at March-end 2019. Net NPAs were at 5.49 per cent of net advances as against 6.85 per cent.

Published on June 23, 2020

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