Another bank, along with BoB which posted its worst performance for Q4FY16 was Union Bank of India (UBI). It reported a shocking 78% (YoY) decline in net profit at Rs.96 crore and like BoB, this too was on account of the surge in provisioning. Thanks to a tax-write back of Rs.251 crore, the Bank managed to stay in the black or else it was sure to have ended the quarter with a loss. UBI’s provision for bad loans rose 55% (YoY) at Rs.1565 crore and 26% sequentially.

Asset quality deterioration was sharp and dramatic – Gross NPA rose from 7.05% to 8.7% (YoY) and Net NPA rose to 5.25% from 4.07%. The Bank saw fresh slippages at Rs.6170 crore, mainly from RBI’s Asset Quality Review (AQR) account. Restructured loans were at Rs.13,617 crore or which 33% slipped into NPAs. UBI stated that 11 accounts worth Rs.2520 crore were restructured under 5/25 scheme – four from power sector, three from steel. Loans worth Rs 1,835 crore have gone into SDR during the quarter while it sold Rs 177 crore of NPAs to asset reconstruction companies in the quarter.