Union Bank of India third-quarter profit misses estimates

Union Bank of India reported its third straight quarterly profit on Monday as the state-controlled lender made lower provisions for bad loans, but missed analysts’ estimates by a wide margin, sending its shares sharply lower.

Net profit was 1.53 billion rupees ($21.48 million) in the three months to Dec 31, 2018, compared to a loss of 12.50 billion rupees a year earlier, the bank said.

That compares to analysts’ average estimate of a profit of 3.24 billion rupees, I/B/E/S data from Refinitiv showed.

Asset quality improved slightly, with gross bad loans as a percentage of total loans coming in at 15.66 per cent by the end of December, compared to 15.74 per cent a quarter earlier and 13.03 per cent a year earlier.