Provision costs pull Union Bank net down 23%

Public sector lender Union Bank of India on Friday reported a 23% year-on-year decline in net profit at Rs 464 crore for the quarter ended June 2011 against Rs 601 crore a year ago on account of a rise in provision against bad loans.

The bank made a provision of R214 crore for bad assets during the quarter, compared to Rs 185 crore in the same quarter a year ago.

Net interest income, the difference between interest earned and interest paid, increased 18% to Rs 1,590 during the quarter ended June 2011 compared to Rs 1,347 crore in the same quarter previous year.