Public sector lender, Union Bank of India has suffered a big dip in net profits this time. The net profits of the bank have shown a 39.80% drop on y-o-y basis amounting to Rs 304 crore as on September 2010.
This fall has been attributed to large provisioning for non performing assets (NPAs) and tax payments.
The second quarter tax expenses for the bank has been Rs 228.35 crore, a 34.32% rise on y-o-y basis. There has been a huge surge in provisions for non performing assets (NPAs)by more than 500% y-o-y to Rs 629 crore.
The NPA level of banks has also taken a rise by 27% to Rs 1,462 crore. "We are aiming for a credit growth of 25% and deposit growth of 20% for FY11 and are targeting a CASA ratio of 35%,'' CMD MV Nair, said.