Profitability may be impacted in 1st half due to COVID-19: Union Bank of India

New Delhi, Jun 17 () State-owned Union Bank of India on Wednesday said the profitability of the bank may be impacted in the first two quarters of the current fiscal due to slowdown in economy caused by the nation-wide lockdown imposed to contain the spread of COVID-19 pandemic.

However, profitability is likely to improve in the second half of the current fiscal subject to restoration of normal economic activity.

There may be an impact on revenue of the bank during the first half of the current financial year due to slowdown of economic activity during the lockdown, Union Bank of India said in a disclosure to stock exchanges.

With measures being taken by Government of India and state governments, normalcy is expected to be restored by third or fourth quarter of the current financial year, it said.

"The bank is adequately capitalised to take care of its present and future operations. Any capital and liquidity constraints on account of COVID-19 is not foreseen at present," it said.

On the liquidity position, it said, there is no cash crunch as timely measures were taken by the RBI and the Government of India.

The bank is regularly monitoring its liquidity position through liquidity returns and computation of Liquidity Coverage Ratio, it added. DP MR