Robust growth in non-interest income and reversal in tax provisions helped the Union Bank of India to record a 12.5 per cent year-on-year increase in net profit in the quarter ended March 31 this year.
The bank reported a net profit of Rs.108 crore in the fourth quarter (Jan-March) as against Rs 96 crore in the year-ago quarter. However, for the full year the net profit was down 59 per cent to Rs 555 crore (Rs 1,352 crore in FY16), the Hindu Business Line reported.
In the Q4, net interest income (the difference between interest earned and interest expended) was up 14 per cent at Rs 2,387 crore (Rs 2,085 crore in the year-ago period).
Non-interest income, comprising fees and commissions, foreign exchange and derivatives revenue, gain on revaluation/sale of investments, miscellaneous income, jumped 45 per cent to Rs 1,446 crore (Rs 996 crore).
Provision for non-performing assets (NPAs) was lower at Rs 1,505 crore (Rs 2,008 crore). There was a reversal in provision for taxes (arising from recognition of deferred tax assets) to the tune of Rs 418 crore.