Union Bank of India Q3 Profit rises 60%


State-owned lender Union Bank of India reported a 60 percent rise in standalone net profit at Rs 3,589.91 crore for the fiscal third quarter. The net profit is in line with Motilal Oswal’s estimate of Rs 3,558.2 crore .


On sequential basis, net profit of the lender was up just 2.24 percent. In July-September quarter, Union Bank of India reported a net profit of Rs 3,511.42 crore.


On sequential basis, net profit of the lender was up just 2.24 percent. In July-September quarter, Union Bank of India reported a net profit of Rs 3,511.42 crore.


This was on back of improved asset quality and increase in net interest income.


The bank's gross non-performing asset (NPA) stood at 4.83 percent, down from 6.38 percent in the September quarter and 7.93 percent in the year-period, the lender said on January 20.

The bank's net NPAs stood at 1.08 percent against 1.30 percent in the pervious quarter and 2.14 percent in Q3FY23.


In absolute terms, the gross NPA of the banks stood at Rs 43,261.88 crore in October-December quarter, as against Rs 54,012.76 crore in a quarter ago period and Rs 63,770.16 crore in a year ago period.


Similarly, net NPA of the lender eased to Rs 9,351.23 crore in a reporting quarter, from Rs 10,471.01 crore in a quarter ago period and Rs 16,195.11 crore in a year ago period.


The net interest income (NII) of the lender in the reported quarter rose just 6.26 percent on-year to Rs 9,168 crore. In July-September quarter, NII stood at Rs 9,126 crore.


The non-interest income of the bank increased 15.29 percent on-year to Rs 3,774 crore. On sequential basis, net non-interest income rose 2.14 percent.


In October-December quarter, net interest margins (NIM) of the bank 3.08 percent, which was down 13 basis points (Bps) on-year and 10 bps on quarter.


One basis point is one hundredth of percentage point.


In a business update earlier this month, the lender reported a 10.67 percent year-on-year (YoY) growth in business at Rs 20.68 lakh crore in the December quarter.


The bank's total advances experienced an 11.44 percent YoY increase, reaching Rs 8.96 lakh crore, while deposits saw a notable 10.09 percent jump to Rs 11.72 lakh crore during Q3FY24.


Retail, Agri and MSME (RAM) segments of the Bank increased by 13.85 percent on-year , where 12.60 percent growth in Retail, 17.88 percent growth in Agriculture and 10.51 percent growth in MSME advances is achieved on a yearly basis.


RAM advances as a percent of Domestic Advances stood at 56.28 percent.


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Latest Bank merger news of PSU banks and PSU Insurance Company

 


A government document shared on social media has triggered speculation about possible PSU bank mergers between Union Bank and UCO Bank, and Bank of India and Bank of Maharashtra. The document, whose source couldn't be verified, said that a Parliamentary committee will hold discussions with four PSU banks in the first week of January under banking laws, which govern mergers and acquisitions, among other things.

However, the government has not yet provided official information regarding the merger. Neither of the four PSU banks mentioned have made any stock exchange filings in this regard.


The document being circulated on X (formerly Twitter) is a government PDF issued in the name of Ramesh Yadav, Under Secretary of the Government of India. The letter is issued to the Governor, Reserve Bank of India, Chairman of LIC, IRDAI, and NABARD, along with MD and CEOs of UCO Bank, Bank of Maharashtra, Bank of India, and Union Bank of India.

The PDF is also addressed to CMDs of New India Assurance Company, United India Insurance Company, Oriental Insurance Company, National Insurance Company, and MD & CEO of SBI Life Insurance Company. The subject of the alleged government PDF states 'Study Visit programme of the Committee on Subordinate Legislation, Lok Sabha to Mumbai and Goa from 2 to 6 January 2024'.

The 2-day programme includes informal discussions with the representatives of Union Bank of India and UCO Bank on January 2, and with representatives of Bank of Maharashtra and Bank of India on January 4, 2024, on rules/regulations framed under Banking Regulations Act 1949 and other relevant Acts as applicable to them and the regulatory mechanism in post-merger scenario.

The Finance Ministry has reportedly issued a clarification, saying that this is a parliamentary committee on subordinate legislation, and it has no connection whatsoever with the policies of bank mergers, according to CNBC-Awaaz. Amid the merger buzz, the ministry reportedly changed the agenda of its meeting. According to the new agenda, there is no mention of the word “Merger”, which simply means that there is no proposal for a merger between Union Bank of India and UCO Bank, Bank of India, and Bank of Maharashtra, said CNBC Awaaz in its report.

Meanwhile, No proposal to merge the public sector banks is being considered by the government and the discussions were part of a ‘routine exercise, Reuters also reported citing two sources from the Ministry of Finance.










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Union Bank Of India Q2 Profit Jumps 90%

 


Union Bank of India's profit jumped 90% in the July–September quarter on account of a significant drawdown in provisions.


The public sector lender reported a net profit of Rs 3,511 crore in the second quarter of fiscal 2024 as compared with Rs 1,847 crore over the same period last year, according to an exchange filing on Friday. Analysts polled by Bloomberg pegged its standalone net profit at Rs 3,139 crore.


Sequentially, the bottom line rose 8.5%.


The net interest income increased 10% to Rs 9,126 crore from Rs 8,305 crore in the year-ago period. As on Sept. 30, the net interest margin stood at 3.18%, up 5 basis points from the quarter ended June.


The bank's domestic advances grew 9.2% year-on-year to Rs 8.2 lakh crore during the quarter, propped up by a strong pickup in education and gold loans. However, the absolute share of the two segments in the loan mix was low.


Domestic deposits increased 7.4% to Rs 11.2 lakh crore in the second quarter. As of Sept. 30, the current account and savings account ratio stood at 34.6%.


The bank met the priority sector lending requirements as prescribed by the Reserve Bank of India, under which all banks have to lend 40% of the adjusted net bank credit towards agriculture, micro enterprises and other economically disadvantaged sections.


The share of loans disbursed to women by the bank was exceedingly well above the 5% benchmark set by the RBI under its PSL norms, according to the investor presentation.


The bank's operating expenses rose nearly 12% to Rs 5,600 crore during the reporting period.


Union Bank of India's asset quality improved, with the gross non-performing assets ratio at 6.38% from 7.34% in the previous quarter. The net NPA ratio fell 28 bps to 1.3%, from 1.58% in the first quarter.


While fresh slippages during the quarter amounted to Rs 2,527 crore, accounts worth Rs 984 crore were upgraded. Loans worth Rs 6,018 crore were written off during the period.


Of the total provisions, the amount set aside for bad loans was Rs 1,691 crore during the quarter, nearly 40% lower than what was provided in the same quarter of the previous year.


The bank's provision coverage ratio stood at 92.03% as of Sept. 30. Its capital adequacy ratio was at 16.69%, with CET-1 ratio at 13.05% and tier-II at 2.12%. Out of Rs 10,100 crore approved by the board to be raised this financial year, the bank has already raised Rs 5,000 crore through equity.

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Union Bank Of India Q1 Results: Profit more than Doubles, Provisions Drop

 


Union Bank of India on July 20 reported a more than 107 percent on-year rise in its standalone net profit to Rs 3,236.44 crore in the first quarter of the current financial year.


This is on the back of improvement in the asset quality, lower provisions and increase in net interest income.


In the similar period last year, the state-owned lender reported Rs 1,558.46 crore profit.

On a sequential basis, net profit rose 16.32 percent, Union Bank of India said in an exchange filing.


In the reporting quarter, the net interest income of the lender increased 16.59 percent on-year to Rs 8,840 crore. Similarly, on the sequential basis, it rose 7.14 percent.


While, the non-interest income of the bank rose 38.57 percent on-year in April-June quarter to Rs 3,903 crore. However, it fell sharply over 25 percent on-quarter.


The net interest margins of the bank increased to 3.13 percent in June quarter, which is up 13 basis points (Bps) on-year, and 15 bps on-quarter.


In the similar quarter last year, the state-owned lender reported net interest margins of 3.00 percent. One basis point is one hundredth of percentage point.


Net interest margins is a measure of difference between interest earned by the lender and interest it pays out to its lenders.


Asset quality


In April-June quarter, Union Bank of India reported an improvement in the asset quality, with gross non-performing asset (NPA) ratio improved by 288 bps and net NPA decreased by 173 bps compared to year ago period.


According to the press release, gross NPA of the bank fell to 7.34 percent as on June 30, as compared to 7.53 percent in the previous quarter, and 10.22 percent in a year ago period.


Similarly, net NPA of the bank decreased to 1.58 percent in April-June quarter, as against 1.70 percent quarter ago.


In absolute terms, gross NPA stood at Rs 60,104 crore, down 19.32 percent on-year, and net NPA stood at Rs 12,138 crore, down 45.79 percent, as per press release.


Provision coverage ratio of the bank also increased by 611 bps to 90.86 percent in the reporting quarter.


The total provisions of the bank in first quarter of the current financial year rose marginally by 1.38 percent on-year to Rs 3,943 crore.


Advances & Deposit

The global and domestic advances of the state-owned lender increased 12.33 percent and 11.77 percent on-year, respectively in June quarter.

According to the press release, global advances stood at Rs 8.19 lakh crore and domestic advances stood at 7.94 lakh crore in April-June.

Deposits rose 13.63 percent 0n-year to Rs 11.28 lakh crore.

However, retail term deposit less than Rs 2 crore fell 0.58 percent on-year to Rs 4.36 lakh crore. On sequential basis, it fell 0.43 percent.


Financial inclusion schemes


During the quarter ending June 30, Union Bank of India done new enrollment of 4.63 lakhs Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).


Similarly, accounts opened by banks under Pradhan Mantri Jan Dhan Yojana (PMJDY) increased 14.06 percent on-year to 2.84 Crores accounts under the Scheme with balance of Rs. 9,002 crore during the quarter ending June 30.


In the corresponding quarter last year, the figure was 2.49 crores account with balance of Rs 7,827 crore.


Under Union Nari Shakti Scheme for Women Entrepreneurs, the bank sanctioned 6,538 applications for Rs 617 crore during Q1 FY24.


In the reporting quarter, the bank sanctioned Rs 10,939 crore towards renewable energy sector and Rs 260 crore towards Union Green Mills.


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Union Bank of India's Q4 net rises 93.3% on healthy growth in NII


Public sector lender Union Bank of India's net profit rose by 93.3 per cent year-on-year (YoY) to Rs 2,782 crore for the quarter ended March 2023 (Q4FY23) on healthy growth in Net Interest Income (NII) and non-interest income.

Sequentially, the profit rose from Rs 2,244 crore in Q3FY23.


For FY23, the bank's net profit grew 61.18 per cent to Rs 8,433 crore against Rs 5,232 crore in FY22.


The board of directors has recommended a dividend of Rs 3.0 per share (Rs 10 each) for FY23, subject to shareholders' approval, the Mumbai-based lender informed BSE.


Its capital adequacy ratio stood at 16.04 per cent with Common Equity Tier of 12.36 per cent at the end of March.


Union Bank’s NII, interest revenues minus interest expenses, grew by 21.9 per cent YoY to Rs 8,251 crore in Q4FY23 as against Rs 6,769 crore for Q4FY22. The net interest margin improved to 2.98 per cent in Q4FY23 from 2.75 per cent in Q4FY22.  


The non-interest income rose by 62.48 per cent YoY to Rs 5,269 crore in Q4FY23, the bank said a statement.


Its advances grew by 13.05 per cent YoY basis to Rs 8.09 trillion in FY23. Out of it, RAM advances – Retail, Agriculture and MSME (RAM)- increased at a higher pace of 14.94 per cent to Rs 4.36 trillion at the end of March 2023.


Total deposits increased by 8.26 per cent YoY to Rs 11.17 trillion. The share of low-cost deposits — current account and saving accounts (CASA) — stood at 35.62 per cent at the end of March 2023, down marginally from 36.54 per cent a year ago.


The asset quality profile improved with gross non-performing assets declining to 7.53 per cent in March from 11.11 per cent in the same month in 2022. The net NPAs also declined 1.7 per cent in March 2023 from 3.68 per cent a year ago. 


The provision coverage ratio improved to 90.34 per cent in March 2023 from 83.61 per cent a year ago.

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Union Bank of India Q1 net profit rises 32% YoY

 


Public-sector lender Union Bank of India’s net profit grew 32 per cent year-on-year (YoY) to Rs 1,558 crore in the quarter ended June (Q1FY23) on the back of a rise in its net interest income (NII).


The Mumbai-based lender had posted a net profit of Rs 1,181 crore during the same period last year (Q1FY22).


Sequentially, its net profit rose 8.19 per cent from Rs 1,440 crore in Q4FY22.


Its net interest income (NII) was up 8.11 per cent in Q1FY23 to Rs 7,582 crore from Rs 7,013 crore in Q1FY22. It increased 12 per cent sequentially from Rs 6,769 crore in the March 2022 quarter.


Its net interest margin (NIM) declined to 3 per cent in Q1FY23 from 3.08 per cent a year ago. However, it improved from 2.75 per cent in March 2022.


A Manimekhalai, managing director, said with the uptick in credit growth, the NIM was expected to improve to 3.1 per cent by March 2023.


Its non-interest income rose by just 1.36 per cent to Rs 2,817 crore in Q1FY23 from Rs 2,779 crore in Q1FY22.


It fell sequentially from Rs 3,243 crore in Q4FY22.


The asset quality profile improved with gross non-performing assets (GNPAs) declining at 10.22 per cent in June 2022 from 13.6 per cent in the year-ago quarter and 11.11 per cent in March 2022.


Net NPAs dipped to 3.31 per cent from 4.69 per cent a year ago and 3.68 per cent in March 2022.


The emphasis will be on recoveries (Rs 15,000 crore) and the bank is looking to reduce GNPAs below 9 per cent and net NPAs below 3 per cent by March 2023, she said.


The provision coverage ratio rose to 84.75 per cent for the quarter under review from 81.43 per cent a year ago and 83.61 per cent in March 2022.


The bank’s loan book grew 12.95 per cent YoY to Rs 7.28 trillion in June 2022 from Rs 6.45 trillion a year ago. Credit is expected to grow 12-13 per cent in FY23 with strong offtake from companies and the retail segment.


Deposits grew 9.27 per cent YoY to Rs 9.92 trillion in June 2022. The share of low-cost deposits -- current accounts and savings accounts (CASA) -- declined to 36.19 per cent in June 2022 from 36.39 per cent a year ago and 36.54 per cent in March 2022. The bank is looking to increase it to 37.8 per cent by March 2023.


The bank’s capital adequacy ratio (CAR) stood at 14.42 per cent in June 2022, up from 13.32 per cent in June 2021.


The bank is planning to raise up to Rs 3,500 crore of equity capital through qualified institutional placement (QIP) in the third quarter of FY23, subject to market conditions.



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Union Bank of India Q4 Results: Firm reports 8% rise in net profit, proposes 19% dividend

  




State-owned Union Bank of India reported an 8.3% year-on-year (YoY) rise in net profit for the quarter ended March 31 backed by robust net interest income.



The net profit for the quarter stood at Rs 1,440 crore against Rs 1,330 crore in the year-ago period.



Net interest margin (NIM), a key profitability ratio, improved 37 basis points to 2.75% in the reporting quarter. Net interest income rose 25.3% at Rs 6,769 crore.


"We endeavour to maintain NIM at around 3%," managing director Rajkiran Rai said.The lender's operating profit rose 11.3% to 5530 crore. Total provision was 12.4% higher at Rs 4,081 crore.



Its asset quality improved with the gross non-performing assets ratio falling to 11.11% at the end of March as compared with 13.74% a year back. The net NPA ratio improved to 3.68% against 4.62%. The capital adequacy ratio stood at 14.52%.




The bank's advances grew 9.6% year-on-year to Rs 7.16 lakh crore while deposits rose 11.75% to Rs 10.3 lakh crore.



"Our guidance is to grow advances by 10-12% this year," Rai said. He said that a 50-100 basis point rise in rates would not impact long-term credit demand although corporates may look for alternate sources for short-term loans.


The bank has Rs 2700 crore exposure to the Future Group and Rs 2492 crore exposure to Srei. Rai said the risks are covered by 58% provision and 86% provision respectively.



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Union Bank of India net profit jumps 49% in Q3

 


State-owned Union Bank of India on Monday posted a 49 per cent jump in net profit to Rs 1,085 crore in the third quarter ended December 31. The bank had earned a net profit of Rs 727 crore in the corresponding quarter of the previous financial year.

Its total income during the October-December quarter of 2021-22 declined to Rs 19,453.74 crore from Rs 20,102.84 crore in the corresponding quarter of the previous financial year, Union Bank of India said in a regulatory filing.

On the asset quality front, the bank's gross non-performing assets (NPAs) fell to 11.62 per cent of the gross advances by the end of the December 2022 quarter, compared with 13.49 per cent by the end of December 2020.

However, net NPAs increased to 4.09 per cent, up from 3.27 per cent at the end of December 2020.

Provisions and contingencies declined significantly to Rs 2,549.58 crore, compared with Rs 5,210.50 crore a year ago.

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Union Bank of India profit jumps 3-fold in Q2

  



State-owned Union Bank of India on Tuesday reported a nearly three-fold jump in its standalone net profit to Rs 1,526.12 crore for the September 2021 quarter. The lender had posted a net profit of Rs 516.62 crore in the corresponding quarter of the previous financial year.

Its total income during July-September 2021 rose to Rs 20,683.95 crore as compared with Rs 20,182.62 crore in the year-ago period, the bank said in a regulatory filing.

Provisionings for bad loans and contingencies fell to Rs 3,723.76 crore, against Rs 4,242.45 crore a year ago.

The bank's asset quality improved with the gross non-performing assets falling to 12.64 per cent of the gross advances by the end of September 2021, from 14.71 per cent by the end of September 2020.

In terms of value, the gross non-performing assets (NPAs) were worth Rs 80,211.73 crore, down from Rs 95,796.90 crore.

However, net NPAs increased slightly to 4.61 per cent (Rs 26,786.42 crore), from 4.13 per cent (Rs 23,894.35 crore) a year ago.

On a consolidated basis, the bank reported a net profit of Rs 1,510.68 crore in July-September 2021, a jump of 183 per cent from Rs 533.87 crore in the year-ago quarter.

Its consolidated total income rose to Rs 21,621.87 crore, from Rs 20,910.91 crore a year ago

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Union Bank of India Profit jumps 255% in Q1

 


Public sector lender Union Bank of India has reported a 255 percent year-on-year growth in Q1FY22 standalone profit, beating estimates, driven by pre-provision operating profit and other income.


The standalone profit increased to Rs 1,181 crore in the quarter ended June 2021, from Rs 332.7 crore in corresponding period last fiscal.Net interest income grew by 9.5 percent year-on-year to Rs 7,013.4 crore in Q1FY22, the bank said in its BSE filing.


Profit was estimated at Rs 701.7 crore and net interest income at Rs 5,891.3 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.Non-interest income in Q1FY22 shot up 98.4 percent to Rs 2,901 crore and pre-provision operating profit rose 31.4 percent to Rs 5,302.81 crore compared to year-ago period.


Provisions and contingencies remained at elevated levels though declined marginally, falling 0.9 percent year-on-year and 9.7 percent quarter-on-quarter to Rs 3,523.81 crore in the quarter ended June 2021.


On the asset quality front, gross non-performing assets as a percentage of gross advances fell 14 bps sequentially to 13.60 percent and net NPA as a percentage of net advances increased 7 bps QoQ to 4.69 percent during the quarter.

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Union Bank of India posts net profit in Q4, asset quality improves

 


Union Bank of India posted a standalone net profit of ₹1,329.77 crore for the quarter ended March 31, 2021. The state-run lender has reported a loss of ₹2,503.18 crore in the corresponding period of previous fiscal.

Union Bank of India clarified that the financial results for fiscal FY21 and its fourth quarter are not comparable to corresponding figures in the year-ago period as "working results for the quarter/year ended March 31, 2021, include operations of erstwhile Andhra Bank and erstwhile Corporation Bank". The central government had approved the scheme of amalgamation of the three banks on March 4, 2020, which came into effect on April 1, 2020.

"Accordingly, the difference of ₹1,309.60 crore between the net assets of amalgamating banks and the amount of shares issued to shareholders of the amalgamating banks has been recognised as Amalgamation Reserve in the opening balance sheet as on April 1, 2020. The bank has considered this amount under CET I for the purpose of calculation of CRAR," Union Bank of India said in a regulatory filing.

Total income during the quarter under review was ₹20,025.99 crore as opposed to ₹11,306.99 crore in the year-ago period. Net interest income for Q4 FY21 stood at ₹5,402.86 crore, against ₹2,878.11 crore in Q4 FY20.

Operating profit for the March quarter of FY21 was recorded at ₹5,179.87 crore, as opposed to ₹2,652.64 crore in the same period of FY20.

The bank saw its asset quality improve, with gross non-performing assets (NPAs) decline to 13.74 per cent of the gross advances as of March 31, 2021, as against 14.15 per cent by the end of corresponding period previous fiscal. Net NPAs or bad loans came down to 4.62 per cent from 5.49 per cent.

The bank said it has not classified the borrower account of Delhi Airport Metro Express (DAMEPL) as NPA in accordance to a Supreme Court order. However, following RBI directives dated June 21, 2019, the bank has not treated ₹94.9 crore as NPA against DAMEPL and made the provisions to the tune of ₹43.31 crore in accordance with the Income Recognition and Asset Classification and Provisioning (IRAC) norms, notionally treating the account as NPA.

"Further, the bank also has exposure of ₹3,269.09 crore with two borrower accounts belonging to another business group. In terms of NCLT, Kolkata bench order dated 21 October 2020, the bank has not declared these accounts as NPA and maintained status quo until further orders. As a prudence, the bank has made a provision of ₹549.45 crore pending final decision," it added.

On the impact of Covid-19 pandemic, Union Bank of India said, "Though the situation continues to remain uncertain, the bank is continuously monitoring the situation and taking all possible measures to ensure continuance of full-fledged banking operations. The management believes that there would not be any significant impact on bank's performance in future and going concern assumptions."

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Union Bank of India sees net profit jump 55%


 State owned Union Bank of India on Friday reported a 55.3 per cent jump in its net profit at Rs 517 crore in the second quarter ended September.

The bank had posted a net profit of Rs 333 crore in the same quarter a year ago.

Net interest income grew by 6.1 per cent to Rs 6,293 crore in the July-September period of 2020-21 from Rs 5,934 crore in the same period of 2019-20, it said in a release.

Gross Non-Performing Assets (NPAs) ratio improved to 14.71 per cent of the gross advances at the end of September this year from 15.75 per cent by September 2019.

Net NPAs fell to 4.13 per cent as of September from 6.40 per cent in the year-ago period.

Provision coverage ratio improved to 83.16 per cent as of September 30, 2020, compared to 74.26 per cent in the year-ago period.

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This Indian PSU banks' have exposure to Sintex Industries


Punjab National Bank (PNB)
reported yet another scam on Thursday to the tune of Rs 1,203.26 crore. The public sector reported its exposure to Sintex Industries as “fraud”, its exposure to Sintex Industries.

“Pursuant to the applicable provisions of Sebi's Listing Obligations and Disclosure Requirements (LODR) and the bank's policy, "we inform reporting of borrowal fraud of Rs 1,203.26 crore in NPA account of Sintex Industries Ltd (SIL)," PNB said in a regulatory filing.

The fraud reporting pertains to the large corporate branch at Ahmedabad zonal office, it added.

"The fraud of Rs 1,203.26 crore is being reported by bank to RBI in the accounts of the Company (SIL). Bank has already made provisions amounting to Rs 215.21 crore, as per prescribed prudential norms," the PSU bank said in a BSE filing.

This after the stressed textile company said it defaulted on its debt repayment of Rs 49.54 crore to a total of 10 investors. Of this amount, Rs 45.84 crore is the principal amount while the remaining Rs 3.70 crore was the due interest.

Sintex Industries’ total debt stands at Rs 7,358.88 crore. According to a TOI report, the total exposure of public sector banks to Sintex could be as much as Rs 6,000 crore. The banks have already classified the Sintex account as a non-performing asset (NPA) but will now will have to make full provision for the loan within four quarters – which is a requirement account classified as fraud.

According to Brickwork Ratings, at Rs 1,203.26 crore, PNB has the highest exposure to Sintex followed by Bank of Baroda (BoB) at Rs 649 crore, it rises to Rs 949 crore if the exposure of Dena Bank and Vijaya Bank, which merged with BoB, is taken into account. Another PSU bank Union Bank of India has an exposure of Rs 621 crore, including the erstwhile Andhra Bank which was merged into Union Bank followed by Canara Bank (erstwhile Syndicate Bank) at Rs 472 crore, Exim Bank at Rs 416 crore, Punjab & Sindh Bank Rs 333 crore, Andhra Bank Rs 250 crore.

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Union bank of India Q1 result : profit down 13%

In its Q1 results after the amalgamation of Andhra Bank and Corporation Bank with it, Union Bank of India (UBI) reported a standalone net profit of ₹333 crore in the quarter ended June 30, 2020.

The public sector bank had reported a net profit of ₹381 crore in the year-ago period.

The bank, in its analyst presentation, said Andhra Bank and Corporation Bank amalgamated into it with effect from April 1. Accordingly, financials as on June 2019 and March 2020 are for the amalgamated entity, it added.

Rajkiran Rai G, MD and CEO, said there has been a substantial improvement in net interest income (NII).

NII (difference between interest earned and interest expended) was up 17 per cent at ₹6,403 crore (₹5,468 crore in the year-ago period).
Other income (comprising core non-interest income, treasury income and recovery in written-off accounts), however, was down 23 per cent at ₹1,462 crore (₹1,897 crore).

Operating profit nudged up 3 per cent at ₹4,034 crore (₹3,918 crore).

Slippages were lower at ₹1,750 crore (₹4,303 crore in the preceding quarter).

Reduction in non-performing assets (NPAs) was sharply down at ₹1,753 crore (₹7,542 crore: preceding quarter) as the pandemic threw recovery operations out of gear.

Rai said 28 per cent of the bank’s term loans by value are under Covid-19 related moratorium as of June-end 2020.

The bank’s board has given approval for one-time restructuring of personal and MSME loans, and instructions will soon be given to the branches on the standard operating procedure to be followed, he added.

The Union Bank chief underscored that the amalgamation will result in cost savings of ₹3,600 crore over three years.

Rai said UBI will disinvest its 30 per cent stake in IndiaFirst Life Insurance Company by December 2020. This sale is expected to fetch about ₹900 crore to ₹1,000 crore.

Originally, erstwhile Andhra Bank was owning 30 per cent stake in IndiaFirst Life. UBI currently has 25.10 per cent stake in Star Union Dai-Ichi Life Insurance Company.

Rai said UBI has board approval for raising ₹10,300 crore, comprising ₹6,800 crore equity and the balance in the form of additional tier-I capital.
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Union Bank of India Q4 net loss narrows


State-owned Union Bank of India on Tuesday reported narrowing of its standalone net loss to Rs 2,503.18 crore in the fourth quarter ended March 2020.

The bank had posted a net loss of Rs 3,369.23 crore during the same quarter of the previous financial year. Sequentially, there was a net profit of Rs 574.58 crore in the third quarter of 2019-20.

Standalone income during the March 2020 quarter rose to Rs 11,306.99 crore from Rs 9,621.01 crore a year ago, the bank said in a regulatory filing.

Its provisioning for bad loans and contingencies in April-March 2020 fell to Rs 3,501.69 crore, compared with Rs 5,766.15 crore in the year-ago period.

For the full financial year 2019-20, Union Bank posted a standalone net loss of Rs 2,897.78 crore, down as compared with a loss of Rs 2,947.45 crore a year ago.

Income during the year, however, rose to Rs 42,491.91 crore from Rs 38,540.61 crore in the previous financial year.

On the asset front, the bank witnessed improvement with the gross non-performing assets (NPAs) coming down to 14.15 per cent of the gross advances as on March 31, 2020, from 14.98 per cent by the end of March 2019.

In absolute value, gross NPAs or bad loans stood at Rs 49,085.30 crore by the end of 2019-20, against Rs 48,729.15 crore a year ago.

Net NPAs fell to 5.49 per cent (Rs 17,303.14 crore) from 6.85 per cent (Rs 20,332.42 crore).

The amalgamation of Andhra Bank and Corporation Bank with Union Bank of lndia was effective April 1, 2020.

"Accordingly, the bank, as a prudential measure, has made harmonisation provisioning in its books of accounts for the position as on March 31, 2020, with regard to impact of divergence in asset classification across Union Bank of India, Andhra Bank and Corporation Bank as per extant norms," it said.

The lender added that it has made an additional harmonisation provision for the quarter and year ended March 31, 2020, amounting to Rs 2,509.98 crore and the same is disclosed as exceptional items in the financial results.

With the amalgamation of Andhra Bank and Corporation Bank, Union Bank has become the fifth-largest public sector bank in the country and has an enhanced business mix having a total business of Rs 15 lakh crore and 120 million customer base.

Its gross advances stood at around Rs 6.50 lakh crore as on March 31, 2020.
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Top Public Sector Banks In India 2020

These banks have emerged to be trusted brands where people deposit and invest money without thinking twice. Some of these banks stand out when it comes to offering services and are thus a preferred choice of greater number of people.


Here is a look at some of the best public sector banks in India.

1] State Bank of India 


Commonly known as SBI, this bank was set up in the year 1955. It is one of the oldest and the most trusted public sector banks in India. SBI is owned by the Indian government. It offers all kinds of banking services and is known for maintaining transparency in its dealings. It boasts of more than 40 crore satisfied customers.

After receiving an overwhelming response from people in India, the bank went on to open its branches worldwide. Today, it has nearly 200 offices in 36 different countries.  The headquarters of SBI are located in Mumbai.

2] Bank of India

This bank was established in the year 1906 as a privately owned entity. However, after the nationalization of banks, it became a public sector bank. This change took place back in 1969. The bank has 5,500 branches operating across the country. 

It has been serving millions of Indians by catering to their banking requirements.The bank also has its branches outside the country. It operates in 22 other countries with around 60 branches. New York, Paris, London and Singapore are among the countries where Bank of India has its branches.

3] Punjab National Bank

This bank came into being in the year 1895. It was founded under the guidance of one of the greatest Indian leaders of all times, Lala Lajpat Rai. The bank was established as a part of the Swadeshi movement. PNB was managed solely by Indians.

It became extremely popular in the pre-independence era and is still trusted as much. It offers several banking services and is known for providing quality banking products. The bank has around 7000 branches and has its presence in every nook and corner of the country.

4] Bank of Baroda

Bank of Baroda was opened in Vadodara, Gujrat in the year 1908. The bank is known to offer quality banking and finance services to its customers ever since its inception.

It is known to be the second largest nationalized bank in the country. The bank does not only operate in India but has its presence around the world. It operates in as many as 25 countries across the globe with more than 75 million happy customers. Dena bank and Vijaya bank merged with Bank of Baroda recently thereby making it an even bigger entity.

5] Central Bank of India

Central Bank came into being in the year 1911. It has been serving the customers happily ever since the beginning. The bank is known to offer numerous banking products.

It has a team of qualified and experienced bankers who have the answer to all your banking related queries and are always happy to help their customers. The bank has nearly 5,000 branches operating pan India. It also has offices in Hong Kong and Nairobi.

The headquarters of this bank is set up in Mumbai.

6] Canara Bank

Established in the year, 1906, Canara bank has its headquarters in Bengaluru. The bank has more than 6000 branches and nearly 9500 ATMs operating across the country. It offers several banking products and is known to offer impeccable service. It has more than 8 crore happy customers.

The bank does not only operate in India but has its branches in many other countries too. It has been serving people in New York, Hong Kong, Shanghai, London, Manama, Leicester, Johannesburg and Dubai.

7] Union Bank of India


Union Bank of India started as a limited company in the year 1919. It became a full-fledged bank in the year 1969 after nationalisation. The bank offers numerous banking products. By providing quality banking services consistently for years it has managed to acquire more than 5 crore customers.
Its customer base is increasing with every passing year. It is the proud owner of over 4500 branches spread across India. It also has branches in 4 other countries including Hong Kong, Sydney, Dubai and Antwerp.

8] UCO Bank


UCO Bank was established back in the year, 1943. It has its headquarters in Kolkatta, West Bengal. The bank has around 50 branches across the country and nearly 4000 plus service units. It has also made its presence overseas with branches in Singapore and Hong Kong.



9] Bank of Maharashtra

Bank of Maharashtra came into being in the year, 1935. The bank has been offering excellent service to its customers ever since its inception. It provides all kinds of banking and finance services. It has its headquarters in Pune. 87.74% of the total shares of the bank are held by the Government of India.

10] Indian Overseas Bank

Indian Overseas Bank was established back in the year, 1937. It has more than 3,400 branches across the country. The bank offers a host of banking services to meet the requirement of different segments of customers. After its success in the country, the bank went on to open branches in foreign land. It has 6 foreign branches.

You can safely open account and acquire other banking services from any of these banks!

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Merger News: Mega merger of 10 PSU banks takes effect; all you need to know

The merger of ten government-run banks into four will come into force from April 1. The branches of the merging banks will operate as branches of the banks in which they have been merged. Customers of merging banks will also now be treated as customers of the banks in which these banks have been merged. The banks' merger was announced last year in August and the union cabinet gave the final approval on March 4. In the past, various other bank mergers have taken place. For instance, in 2017, the country's largest public lender - the State Bank of India took over five of its associates and Bharatiya Mahila Bank. Last year, Vijaya Bank and Dena Bank were merged with Bank of Baroda. Kotak Mahindra Bankcand ING Vysya Bank merger and amalgamation of Centurion Bank of Punjab Ltd. with HDFC Bank took place in 2014 and 2008, respectively.

Here are a few aspects of the PSU bank merger:
1. As per the latest merger- Oriental Bank of Commerce (OBC) and United Bank of India (UBI) will be merged with Punjab National Bank (PNB). The merged entity will become the second-largest state-run bank. The new entity will have a business of Rs 17.95 lakh crore and 11,437 branches.

2. The amalgamation of Syndicate Bank into Canara Bank will create the fourth-largest public sector bank with Rs 15.20 lakh crore business and a network of 10,324 branches.

3. Allahabad Bank branches will operate as those of the Indian Bank. The merger of Allahabad Bank with the Indian Bank will create the seventh-largest public sector bank with Rs 8.08 lakh crore business.

4. Branches of Andhra Bank and Corporation Bank will function as the branches of Union Bank of India. Andhra Bank and Corporation Bank's merger with Union Bank of India will create India's fifth-largest public sector bank with Rs 14.59 lakh crore business and 9,609 branches.

5. The government had front-loaded Rs 68,855 crore to take care of the bank-merger plan.

6. Punjab National Bank was given Rs 16,091 crore, Union Bank of India Rs 11,768 crore, Canara Bank Rs 6,571 crore and Indian Bank Rs 2,534 crore. Allahabad Bank was provided Rs 2,153 crore, United Bank of India Rs 1,666 crore, Andhra Bank Rs 200 crore, Indian Overseas Bank Rs 4,360 crore and UCO Bank Rs 2,142 crore.

7. According to the government, the merger of the 10 banks will lead to the creation of stronger establishments. This merger would follow in the example of the amalgamation of Bank of Baroda, Vijaya Bank, and Dena Bank last year.

8. With this mega-bank mergers, the number of PSBs will get consolidated from 27 banks in 2017 to 12 banks in 2020.

9. The new 12 public sector banks will be -- six merged banks and six independent banks. State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, Indian Bank will be the six merged banks. And Bank of India(BoI), Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab and Sind Bank, which have a strong regional focus, will remain independent entities.


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