India’s Union Bank shares tumble after Q1 profit fall


MUMBAI– Shares in Union Bank of India fell as much as 7.3 percent on Monday in their biggest single-day fall in nearly seven months, after the state-run lender reported its first-quarter profit plunged 68 percent on higher bad loans.

Union Bank said on Saturday net profit fell to 1.67 billion rupees for the three months to June 30, from 5.19 billion rupees a year earlier.

Gross bad loans as a percentage of total loans rose to 10.16 percent as of end-June from 8.7 percent at end-March, and compared with 5.53 percent as of June 2015.

Union Bank shares were trading at 128.80 rupees, down 6.9 percent, as of 0408 GMT, as against a 0.2 percent gain in the broader NSE Nifty.