State-run United Bank of India on Tuesday reported close to four-fold jump in its net profit to R64.10 crore for the quarter ended December 31, 2016, from R17 crore for the same period a year-ago.
On a quarter-on-quarter basis, assets quality improved for the city-based lender as during the December quarter its non-performing assets (NPAs) in absolute term declined by 2.6% to R10,845.31 crore from R11,134.47 crore in the September quarter this fiscal. On a year-on-year basis, however, the bank’s gross NPA surged by 61.35% from R6,721.53 crore.
In a stock exchange filing, the bank said its operating profit grew 125.89% y-o-y at R530.15 crore from R234.69 crore in the year-ago period, backed by a huge growth in its non-interest income.
During the period under review, non-interest income (other income) soared a whopping 127.89% y-o-y at R814.08 crore. Amid falling bond yield, pre-tax gains from treasury operation rose close to 57% y-o-y at R503.43 crore during the third quarter this fiscal against R320.83 crore in the corresponding period last fiscal year. Provisions and contingencies grew by a whopping 520.60% y-o-y to R1,380.85 crore from R222.50 crore for the same period a year ago. The bank, in a release, said provision against non-performing loans and advances rose by R25.11 crore during the third quarter.
Its gross NPA as a percentage of total loans came down to 15.98% in the December quarter this fiscal from 16.26% during previous quarter. Gross NPA ratio stood at 9.57% at the end of December quarter last fiscal. During the period under review, net NPA ratio also fell to 10.62% from 11.19% in the previous quarter.
As United Bank posted a healthy jump in net profit and assets quality improved sequentially, its scrip on Tuesday closed at R28.05, up 14.02% on BSE from the previous close.