Union Bank's Profit Soars Amid Controversy

Union Bank of India has announced a significant 50% rise in net profit for the March quarter, totalling Rs 4,985 crore. This increase comes amidst concerns over the Reserve Bank of India's (RBI) rate cuts potentially impacting future net interest margins.

CEO A Manimekhalai addressed the media, emphasizing the bank's focus on sustainable and prudent growth, despite an environment that poses challenges to projecting credit growth in the new fiscal year. She refrained from commenting on controversies related to allegations of impropriety in a bulk book purchase involving former chief economic advisor Krishnamurthy Subramanian.

Alongside the profit announcement, Union Bank reported a stable core net-interest income of Rs 9,514 crore. However, a notable rise in non-interest income and reduced provisions contributed to the profit increase. The bank's operating expenditures surged by nearly 20% to Rs 7,373 crore, increasing the cost-to-income ratio. The board has instructed staff in border areas to maintain security measures robustly, as share prices climbed 6.28% amid general market corrections.

(With inputs from agencies.)