United Bank of India has reported a profit of Rs 124 crore during the July-September quarter, supported by lower provisions and healthy growth in the net interest income. Asset quality also improved sequentially.
The state lender had reported a loss of Rs 883.2 crore in the same period last year.
The bank's net interest income grew by 74.6 percent year-on-year to Rs 773 crore. Gross non-performing assets (NPAs) as a percentage of gross advances declined 38bps sequentially to 15.51 percent and net NPA as a percentage of net advances dropped 31bps QoQ to 7.88 percent in Q2FY20.
Provisions and contingencies fell sharply to Rs 436.4 crore in the September quarter against Rs 571.6 crore in the June quarter and Rs 1,481 crore in Q2FY19.
The bank paid a tax of Rs 38.3 crore for the quarter against a tax credit of Rs 392 crore in the same period last year.
The stock was locked at 20 percent upper circuit at Rs 8.9 on the BSE at 1509 hours. There were pending buy orders of 624,570 shares, with no sellers available.
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