Public sector lender United Bank of India reported a 41% y-o-y rise in net profit to Rs 61.86 crore during the quarter ended September 30, against Rs 43.8 crore in the year-ago period, backed by a healthy growth in operating profit.
Asset quality improved during the second quarter as non-performing assets (NPAs) as a percentage of total loans fell to 8.90% from 10.78% in the corresponding period last fiscal, according to a BSE filing. Operating profit during the September quarter rose 12.89% year-on-year to Rs 518.22 crore, while total income grew over 3% year-on-year to Rs 2917.19 crore.
Net interest income was at Rs 638.72 crore, up 13.91% year-on-year. Net interest margin stood at 2.24%.
Against Rs 800.70 crore in second quarter last fiscal, fresh slippages came down to Rs 139.68 crore during Q2FY16. Cash recovery from bad loans during the year stood at Rs 548.07 crore and reduction of non-performing assets amounted to Rs 560.29 crore , which included sale of assets of Rs 331.10 crore during the September
United Bank’s net NPA ratio fell to 5.61% from 7.19% in the year-ago period.