Non-performing assets hit UBI's Q4, net up only 4%

Moneycontrol Bureau

Kolkata-based public sector lender United Bank of India (UBI) on Saturday reported a muted growth of just 4% year-on-year in its fourth quarter (Jan-March) net profit at Rs 149 crore; due to higher provisions followed by rise in non-performing assets.
During the quarter, provisions rose more than 9% y-o-y to Rs 307 crore while other income too fell 22% to around Rs 7 crore.
The gross non-performing asset ratio shot up from 2.51% to 3.41% at Rs 2,176 crore quarter-on-quarter while net NPA ratio increased from 1.42% to 1.72% at Rs 1,075 crore during the same period.
However, net profit rose 21% y-o-y to Rs 633 crore for the year ended March 31, 2012. Bank’s loan book expanded 18% y-o-y to Rs 63,043 crore. Deposits grew 14% to Rs 89,116 crore.
Bank's capital adequacy ratio stood at 12.69% vs 13.05% (YoY). During the year, it has allotted 1.65 lakh crore shares of Rs 10 each at a price of Rs 79.74 per share to the Life Insurance Corporation of India.
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