United Bank of India has reported a net loss for the seventh quarter in a row, with the third quarter seeing the highest loss ever for the bank. "This is the worst quarter for me," said Managing Director Ashok Kumar Pradhan.
"I was expecting around Rs 800 crore. We had to provide for in fact IL&FS, so that brought an additional pressure of about Rs 300 crore. My exposure to IL&FS is Rs 1,078 crore. We have provided for Rs 400 crore of loss but we have made a prudential provision at the rate of 20 percent for the entire group," he said.
In terms of slippages numbers, he added that it was around 4.46 percent so the bank won't expect any slippages henceforth. It was about Rs 2,300 crore in rupee terms. Corporate slippages is around Rs 1,800 crore, he added.
Speaking about expected gross non-performing assets (GNPA) levels and slippages levels, Pradhan said that, "I won't have any slippages in this quarter unless and until something extraordinarily happens. As far as National Company Law Tribunal (NCLT) accounts are concerned, we have provided to the tune of about 74-75 percent. So there won't be any additional requirement in this quarter. Provision coverage ratio (PCR) is about 65 percent."
On prompt correction action (PCA) framework situation, he further mentioned that, "I will be in the black in Q4 itself. My net NPA has come down to 12 percent. So I should be below 9 percent and in the threshold I by March quarter."
Source: CNBC-TV18
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!
