Net profit drops 37% to Rs 727 crore of Union Bank

The post-amalgamated standalone total profit of the bank stood at Rs 1,159 crore in the December quarter fiscal the presentation showed. The pre-amalgamated standalone total profit of all the lenders stood at Rs 574.58 crore, according to this filing on exchanges.

BSE filing, the bank’s consolidated total net profit stood at Rs 719.4 crore as against Rs 554.36 crore in the year-ago period. All the lenders, however, said the December 2019 quarter figures were related to its standalone and consolidated financials for the pre-amalgamation period.

Hence not comparable to the post-amalgamation financials for the quarter finished New Year’s Eve, 2020. This has been an awfully sensible quarter for our bank. The whole provision we tend to be holding for this pandemic of COVID impact on our assets is Rs 3,500 crore.

We should be able to take care of the probable hits on the total asset quality for the quarter. Our balance sheet is very quite strong now, some of the lender’s managing directors as well as CEO Rajkiran Rai G already told reporters. 

He already said the total net profit of the amalgamated entity is very high as Corporation Bank had already written back a substantial amount of Rs 1,500 crore, recovered from Essar Steel, as the profit.

This bank’s one-time restructuring book for this COVID-19 pandemic connected stress stood at Rs 16,725 crore. Out of that, this has completed restructuring price Rs 3,272 large integer up to New Year’s Eve and expects Rs 3,454 large integer of the restructuring within the next half 6 months.

Also based on the Supreme Court’s September 3 interim order, the bank has not classified the domestic borrower account as the NPA, which was not declared as the NPA till August 31, 2020. If it would have classified the said all the borrower’s accounts as NPA.

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