Oct 29 (Reuters) - Union Bank of India posted a surprise quarterly profit on Monday as the state-controlled lender set aside lower provisions for bad loans.
Net profit was 1.39 billion rupees ($18.92 million) in its fiscal second quarter ended Sept. 30, compared with a loss of 15.31 billion rupees a year ago, the bank said here
Analysts on an average had expected a loss of 937 million rupees, according to Refinitiv data.
Provisions for bad loans dropped 50.6 percent to 17.10 billion rupees. Gross bad loans as a percentage of total loans stood at 15.74 percent at end-September, compared with 16 percent a quarter earlier, and 12.35 percent a year earlier. ($1 = 73.4825 Indian rupees) (Reporting by Chris Thomas in Bengaluru; Editing by Subhranshu Sahu)