One of the leading names in the Indian banking industry, Union Bank of India has recently posted disappointing Q2 results in the Indian market wherein the banking giant has said that it net profits have fallen by close to 40%.

While the bank said that it has provided more for rising bad loans which may keep rising, but at a slower pace. According to the numbers posted by the bank, the earnings stood at Rs 304 crore, which was much down from the Rs
505 crore earned by the bank in a year ago period.

In fact, the stock market also reacted harshly to the dismal numbers as the shares of the company fell 5.9% to Rs 392.80. Union Bank chairman and managing director MV Nair said that the bank expects the pace of slippage to moderate in the coming quarters.

He also said that the bank has sought capital from the government with a view to boost its Tier I capital which is currently fallen below the targeted 8% level. The operating profit of the bank grew by 40% on the rising loans.