Union Bank of India is not enthused with the Bank’s performance for Q4FY17. Despite other income bolstering its net profit, the Bank missed all profit estimates. It showed a 12.5% (YoY) surge in net profit at Rs.108 crore and this was mainly on account of exceptional income on account of tax write back, added into other income, which was up 45% at Rs.1446 crore.

On the other hand, it has improved its asset quality. Gross NPA improved from 11.7 % to 11.7% and Net NPA too bettered from 6.95% to 6.57%. But provisioning remained high at Rs.2444 crore v/s Rs.1670 crore in Q3 and Rs.1565 crore on YoY. Slippages have come down 10% (QoQ) at Rs.2951 crore.

For the current fiscal, the Bank has set itself a target of bringing down the Gross NPA to 10.75%, improve its deposit book by 6-8%, loan book by 8-10% and increase its provision coverage ratio from current 51.41% to 55%.