United Bank of India’s net loss widens to Rs 1,139 crore

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Kolkata | Published: February 6, 2019 4:43:03 AM

The Kolkata-based bank, which is under the prompt corrective action (PCA) of the Reserve Bank of India, had reported a net loss of Rs 883.17 crore during the second quarter this fiscal.

United Bank of india, prompt corrective action, Reserve Bank of India, NPA, NPA ratioThe Kolkata-based bank, which is under the prompt corrective action (PCA) of the Reserve Bank of India, had reported a net loss of Rs 883.17 crore during the second quarter this fiscal.

Public sector lender United Bank of India on Tuesday reported a net loss of Es 1,139.25 crore for the quarter ended December 31, 2018 against a net loss of Rs 637.53 crore for the same period a year ago with provisions to cover bad loans soaring nearly two-fold.

The Kolkata-based bank, which is under the prompt corrective action (PCA) of the Reserve Bank of India, had reported a net loss of Rs 883.17 crore during the second quarter this fiscal. During the December quarter this fiscal, gross non-performing assets (NPAs) in absolute terms fell 2.81% quarter-on-quarter to Rs 14,737.61 crore from Rs 15,163.28 crore from the September quarter, according to a stock exchange filing. Gross NPA as a percentage of total loans also fell 142 basis points (bps) to 21.27 % from 22.69% during the previous quarter. During the period under review net NPA ratio decreased 228 bps sequentially at 12.08.

During the October-December last year the public sector bank’s operating profit saw a healthy 111% y-o-y increase at Rs 382.64 crore against Rs 181.53 crore in same period previous year. Total income during the period posted a 14.63% growth at Rs 2,846.23 crore, while its non-interest income witnessed a rise of 62.65% y-o-y at Rs 778.08 crore.

Net interest income soared by over 9% y-o-y to Rs 380.04 crore from Rs 347.94 crore in the corresponding period last fiscal. Provisions and contingencies jumped 83.10% y-o-y to Rs 1,967.20 crore from Rs 1,074.35 crore in the corresponding period of FY18. Provisions for non-performing assets soared nearly 87% y-o-y at Rs 1,801.51 crore.

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