State-controlled lender Union Bank of India on Thursday reported a decline of 26.65 per cent in its standalone net profit at Rs 578.9 crore for the fourth quarter ended March 31, 2014, on the back of higher provision and weak asset quality.
"The bank had posted the standalone net profit of Rs 789.38 crore in the corresponding period a year ago," Union Bank of India said in a filing to Bombay Stock Exchange.
In Q4 FY 2013-13, the total income of bank grew by 12.59 per cent to Rs 8,444.95 crore from Rs 7,500.59 crore in the quarter ended March 31, 2013.
During the quarter under review, the bank's gross non-performing assets rose to 4.08 per cent of total loans compared to 2.98 per cent in corresponding quarter of last fiscal. Net NPAs too increased to 2.33 percent to 1.61 per cent on quarter-on-quarter basis.
Net interest income, the difference between interest earned and paid, rose 3.6 per cent to Rs 2,052 crore as against Rs 1,980 crore in the corresponding quarter of previous fiscal. The net interest margin (NIM) for the March quarter stood at 2.55 per cent, against 2.89 per cent in the year-ago period.
During the quarter under review, total provision increased to Rs 920.52 crore, up 40.42 per cent, from Rs 655.53 crore in the same quarter last year.For the year ended March 2014, net profit declined 21.4 per cent to Rs 1,696 crore against Rs 2,158 crore in the previous financial year.
Commenting on performance, bank's chairman and managing director, Arun Tiwari said the bank had contained growth in risk-weighted assets. It also pruned its portfolio of corporate loans which were given at base rate.
The Board of Directors of the bank has also recommended final dividend of 13 per cent i.e. Rs. 1.30 per share in addition to the interim dividend of 27 per cent already declared in the Board Meeting dated January 08, 2014.