October 29, 2018 / 10:14 AM / 2 months ago

Union Bank of India posts surprise second-quarter profit as bad loan provisions fall

The logo of Union Bank of India is pictured on the wall of its branch in Kolkata, April 11, 2017. REUTERS/Rupak De Chowdhuri/File Photo

(Reuters) - Union Bank of India posted a surprise quarterly profit on Monday as the state-controlled lender set aside lower provisions for bad loans.

Net profit was 1.39 billion rupees ($18.92 million) in its fiscal second quarter ended Sept. 30, compared with a loss of 15.31 billion rupees a year ago, the bank said.

Analysts on an average had expected a loss of 937 million rupees, according to Refinitiv data.

Provisions for bad loans dropped 50.6 percent to 17.10 billion rupees. Gross bad loans as a percentage of total loans stood at 15.74 percent at end-September, compared with 16 percent a quarter earlier, and 12.35 percent a year earlier.

($1 = 73.4825 Indian rupees)

Reporting by Chris Thomas in Bengaluru; Editing by Subhranshu Sahu

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