Public sector United Bank of India on Thursday reported 59.31 percent decline in net profit to Rs 17 crore for the December quarter despite decrease in bad loans.
The bank had posted a net profit of Rs 41.78 crore in the third quarter of the previous fiscal.
The total income declined marginally to Rs 2,827.91 crore during the quarter under review from Rs 2,934.66 crore in the same quarter last fiscal.
Decline in operating profit as well as net profit is due to reduced interest income and in trading profit, United Bank of India said in a statement.
The bank's Net Interest Income (NII) declined by 2.31 percent to Rs 608.10 crore as against Rs 622.47 crore in the corresponding quarter of the previous fiscal, it said.
Operating profit of the bank slipped to Rs 470 crore compared with Rs 602.77 crore in the year-ago period.
As far as bank's asset quality is concerned, gross NPAs as a percentage of total advances declined to 9.57 percent from 12.03 percent in the same quarter a year ago.
Net NPAs declined to 5.91 percent from 8.50 percent at the end of December 2014, it said.
Gross NPA in absolute terms declined to Rs 6,721.53 crore as compared with Rs 7,809.38 crore in the year-ago period.
As a result, total provisions, excluding for income tax, made came down to Rs 457.81 crore during the third quarter of the current fiscal as against Rs 520.42 crore in the year-ago period.
The fresh slippage during the quarter was Rs 1,159.84 crore as against Rs 1,621.77 crore in same period a year ago.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
