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  1. United Bank of India posts Q3 loss of Rs 638 crore

United Bank of India posts Q3 loss of Rs 638 crore

State-run United Bank of India on Monday reported a net loss of Rs 637.53 crore for the quarter ended December 31, 2017

By: | New Delhi | Published: February 13, 2018 3:21 AM
United Bank of India, ubi, banking sector, economy, india Gross NPA as a percentage of total loans rose to 20.10% from 15.98% a year ago. In the September quarter of this fiscal, the gross NPA ratio was at 18.80%.

State-run United Bank of India on Monday reported a net loss of Rs 637.53 crore for the quarter ended December 31, 2017, against a net profit of Rs 64.10 crore a year ago, due to a massive fall in operating profit and a huge increase in provisions to cover rising bad loans.

The lender’s asset quality worsened further in Q3. Gross non-performing assets (NPAs) in absolute terms rose 26.51% year-on-year (y-o-y) to `13,720.69 crore. And, on a quarter-on-quarter (q-o-q) basis, gross NPAs were up by 6.42% from Rs 12,892.67 crore in the September quarter this fiscal, according to a stock exchange filing.

Gross NPA as a percentage of total loans rose to 20.10% from 15.98% a year ago. In the September quarter of this fiscal, the gross NPA ratio was at 18.80%.

During the September-December period last year, the bank’s operating profit saw a 65.76% y-o-y fall to Rs 181.53 crore, compared with Rs 530.15 crore a year ago. This was largely due to a near 41% y-o-y decline in treasury profit to `297.62 crore and a 3.6% y-o-y fall in net interest income to Rs 347.94 crore. Total income declined by 19.4% y-o-y to Rs 2,483.01 crore with interest earned slipping 12% y-o-y to Rs 2,004.64 crore, compared with Rs 2,271.98 crore a year ago.

During the third quarter, the bank’s provisions and contingencies stood at Rs 1,074.35 crore, up 82.5% y-o-y.

The bank’s provisions for NPAs rose 95% y-o-y to Rs 964.07 crore, up from Rs 494.52 crore. It has provided Rs 167.44 crore during the third quarter of this fiscal towards seven accounts under provisions of the Insolvency & Bankruptcy Code (IBC).

In the December quarter, the net NPA ratio rose to 11.96% from 10.62% in the same period last fiscal. The bank’s net NPA ratio stood at 11.63% at the end of the second quarter of FY18.

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