Moneycontrol Bureau
United Bank of India has turned profitable during October-December quarter due to sharp slide in provisions and jump in other income. However, the net was impacted by lower net interest income.
Net profit for the quarter stood at Rs 41.8 crore in December quarter against loss of Rs 1,238 crore in same quarter last year. However, net interest income (the difference between interest earned and interest expended) fell 18.2 percent year-on-year to Rs 622.5 crore during the same period.
Other income (non-interest income) shot up 92.5 percent to Rs 426 crore and operating profit climbed 10.6 percent to Rs 602.8 crore on yearly basis.
Provisions for bad loans dropped 72 percent year-on-year (up 47.8 percent sequentially) to Rs 520.4 crore with provision coverage ratio at 52.48 percent in December quarter.
Capital adequacy ratio (as per Basel III norms) of the public sector lender stood at 10.4 percent in Q3FY15 against 10.48 percent in previous quarter and 9.01 percent in the year-ago period.
Asset quality worsened in the quarter ended December 2014. Gross non-performing assets (NPA) climbed 121 basis points year-on-year (up 125 bps sequentially) to 12.03 percent and net NPA jumped 106 bps Y-o-Y (up 131 bps Q-o-Q) to 8.50 percent in the quarter gone by.
At 14:30 hours IST, the scrip of United Bank of India was quoting at Rs 37, down Rs 0.50, or 1.33 percent on the BSE.
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