Shares of state-run Union bank of India fell as much as 7% after the lender reported a drop in its core income for the March quarter on Thursday, April 23.
Net Interest Income (NII) or core income for the quarter declined by 1.1% from the same quarter last year to ₹9,406 crore from ₹9,514 crore.
Net profit for the period increased by 6.6% year-on-year to ₹5,316 crore from ₹4,985 crore last year.
Asset quality though improved for the PSU Bank on a sequential basis. Gross NPA improved to 2.82% from 3.06% in December, while Net NPAs were steady at 0.48% from 0.51% in December.
Provisions for the quarter have seen a substantial increase, rising to ₹1,055 crore, which is a 3x jump from the ₹322 crore provision figure during the December period.
For the quarter, fresh slippages stood at ₹2,023 crore from ₹1,660 crore in the December quarter. Slippage addition stood at ₹2,102 crore from ₹1,853 crore on a sequential basis.
Union Bank of India had earlier disclosed its business metrics in an update earlier this month.
Global advances for the quarter increased by nearly 10% from last year to ₹10.78 lakh crore, while global deposits were up 2.7% to ₹13.06 lakh crore.
Shares of Union Bank of India are now trading 6% lower after the results announcement at ₹182.38. The stock had recently made a 52-week high of ₹205.49. Shares have risen 11% in the last one month.
This is breaking news and will be updated with more details.